Written on 9th but posted on 13th Dec

The word whipsaw comes to mind as I start writing this note. I am worried about the fact that I went and sold my long positions yesterday and yes went short at 5955. There is this sinking feeling in my stomach that the Nifty is going to whipsaw me.

So let me say it and get it out of the way. I will BUY the Nifty i.e cut my short positions and go long if Nifty futures crosses 6010 today. Else I continue to run my short positions.

Actually it is currently all about the Euro. The Euro had turned down once again ( or so I thought) when it broke below 1.3190. But it has overnight turned up again and if it crosses 1.3440 is almost clearly in an uptrend.

According to my way of looking at things, banks have been the worst hit stocks in this fall and Reliance has been the leader of this recent uptrend to 6090 in the Nifty. If SBI changes its trend from down to up and Nifty crosses 6010 then Nifty will get an additional leg up. Similarly if Reliance turns down then it will be easier for the Nifty to head lower. Today could be the day when the future course of this market is decided.