As Good As It Gets

Last week, the markets recovered towards the end leading to a rally in most assets in the second half of the week. Nifty has rallied along with other indices. According to my trading system, Nifty becomes a BUY if it crosses above 5635. A similar trend is observed in commodities. Metals, both precious and industrial, and crude rallied along with stocks. This was also in conjunction with a rally in Euro. Clearly, at this moment, everything is about the Euro region. Market players are changing the opinion about the ability of the Euro region to handle the crisis on a regular basis and that is reflected in the prices of almost all assets.

Since I am under no illusion about my ability to forecast what the market is going to believe next about the Euro (And I suspect nobody else does too) it will be an exercise in futility to try and predict the markets moves. I therefore am happy to try and follow the market's moves- which is what precisely my trend following system does.

So just to reiterate, Nifty moves from down to an uptrend above 5635. HSI (HI1 above 23240) Kospi2 (KM1 above 282.40) HSCEI (HC1 > 13050) Nikkei (NK1 > 9730) and finally S&P (SPM1 > 1345.50). I did send out a few TMSGs last week. As it turns out there are four BUY Calls still running. 3 of them are banks viz KMB, HDFCB and ICICIBC. The one other is BPCL. The only one that hit the stop was my TMSG on Tata Motors. A buy call given on the day of the results. The share tanked the next day and hit my stoploss despite a decent showing in the numbers. The good thing for me is that the others have done well--- so far.

Finally, I had just the weekend I long for. A weekend-- doing nothing. I did not even see the IPL final. I would have wanted to see the Champions League final between Barcelona and Man U but it was too late in the night for me. Had to get up early for my long run on Sunday. The only worthwhile thing I did was to take my daughter out to see Kung Fu Panda 2. I enjoyed it almost as much as the first part. For sequels, that is as good as it gets.