Written on 19th but posted on 13th Dec

Yesterday morning I feared a whipsaw which never happened during the day. I was short going into yesterday trading and was worried about a rally. That is what happens when one thinks I guess. Any way the fact remains that even now I will cut my short positions and go long on Nifty futures if we trade above 5943 on the futures.

Considering the fact that the short positions were taken at 5955, I am at worst getting out at breakeven on my short trades. Also the key is I think the fact that finally Reliance capitulated. The last man standing fell yesterday.

All along I have been tracking the Euro. It fell below 1.3190 day before yesterday which made me more confident about the SELL on Nifty. The Euro should stay below 1.3325 (yesterday's high) for me to remain negative on the Euro. The 10yr US gove bond yields have been trending higher. This situation changes only if we see a break below 3.12 on a closing basis. I leave it to the economists to answer whether we can see a rally in yields and a rally in stocks at the same time. I am just a trader who tells you as he sees it.

On Monday I promise to give you a few stock ideas for the coming weeks. Wow, this almost sounded like a teaser campaign to keep my readers coming back for more! But let me assure you that I wrote that line actually to get me work over the weekend and honor the commitment. Talking about commitments, I have for the last few months commited 4 days a week to practice for the Mumbai Half Marathon in Jan. So I know a little about honoring commitments. I will be running it for the first time. People who know me will realise what an achiement it will be if I actually manage to complete it!