Act of War

The Nifty disappointed. The morning low of 5530 was the low of the day. It then rallied to end the day at 5558. If you are wondering why I should be disappointed when the Nifty went up, you need reminding that I am short on the Nifty and will continue to be short until 5635 is taken out. Disappointment is but natural. Further, the continuation trade that I mentioned yesterday remains. I will sell Nifty if it breaks below 5530 or the first hour low---whichever is lower.

Despite the rally in the last few days, my view remains negative on most equity indices and all commodities except Gold. Hopefully, the market moves lower and helps me make some money. But every thing depends on what US does overnight (I am writing this part of the note in the evening in India). Though US could go up and spoil the chances of a fall in the markets tomorrow, I still love the US. I will never be able to say or hear a bad word against the nation.

You may ask why? Why do I love the US so much? The answer is because it is one of the most dynamic, innovative and creative nations in the world. In fact in recent times the levels of innovation and creativity shown by the US is unsurpassed not only any other country but also by its own self in the past. For eg. when Osama was found hiding in Pakistan (which is a sovereign nation, lest one forgets) they invoked their right to act against him by creatively using the "Act of War" Doctrine. When Saddam was to be eliminated they created entirely fictitious WMDs. I have already talked in my previous notes about the innovative BIG Ben. Now I hear they are ready to term hacking US computers an "Act of War". I love the way they have constantly innovated on the Doctrine. I have in fact decided to imitate the US in a small way as an act of homage to a great Nation, After all, as they say "Imitation is the best form of flattery".

Consider the advantages of this decision, if you please. If my neighbour irritates me by putting his garbage bag next to my door, I can go to his office and beat him to pulp. In the process if a few of his colleagues get hurt, well bad luck because collateral damage is inevitable. If a car driver cuts into my lane then I retain my rights within the "Act of War" doctrine to smash the car with any weapons at my disposal. If a colleague misbehaves then he better watch out. I am inspired by the USA.

Do I hear somebody ask what about propriety, rule of law etc. Well let me remind you that the "Act of War" doctrine absolves anybody who invokes it of any such responsibility. The only prerequisite is to be reasonably certain that one can get away with it. It is important to pick and choose your opponent. That is all.

If only I could use this doctrine against the market when it goes against my wishes! I would be a rich man!