Currently I am short on STT and have a zero position on LTT. The long on LTT will get triggered if nifty futures crosses 5594 and the long on STT will get triggered if Nifty futures crosses 5624.

This Euro crisis was first triggered in May 2010. Since then, there has been a continuous series of solutions which have given a temporary relief to the market. Yesterday too, some noises emerged from various places in Europe the net result of which was that some calm was restored to the markets. This resulted in a sharp rally in most commodities including Crude, Metals and Precious Metals.

My problem in going long now is that there is this very strong feeling that this calm is only temporary and we will see another fall soon. However, as in the past, I have to follow my system and will go long if required by my system.

Current Position   STT Short  LTT NIL (-2/3 + 0 = 2/3 of my max exposure short)                                                                           Possible Trades

TradeI LTT: Go long > 5594 (-2/3 + 1/3 = 1/3 short)

TradeII LTT: Go Short < 5446 (-2/3 -1/3 = 100% short)

TradeIII STT: Cut Short and Go Long > 5624 (2/3 + 1/3 = 100% long)