The Shopowners of Powai

 I and the shopowners of Powai have a wonderful relationship. For years I have been buying their products with what can be uncreatively called as Mahesh Dollars. Since that currency is not useful anywhere else, they in turn give it back to me for my IOUs of various terms. It has worked well till now since they always believed that I will honor my IOUs. The IOUs had recently grown so big that my family was beginning to get worried. They suggested that I limit my IOUs and not borrow beyond that limit. You know what? The shopowners actually panicked. If I stopped buying their goods then what will happen to their business etc! Yesterday after days of bargaining with my own family I decided not to impose any limit on the IOUs. Last I heard, the shopowners were partying late into yesterday night.

Naturally you dismiss this because it is so obviously unbelievable. But just because we replace me with the US and the shopowners with other countries of the world it becomes not only believable but desirable! If this is not unbelievable then what else is?

Clearly the stockmarkets of the world are partying on the basis of this so called desirable news. The Asian markets are up. Singapore Nifty is up too. The only question is how soon will the partying stop and the hangover start?

Given the tenor of this note, you will know that I am short the Nifty (otherwise I too might have been partying with the rest of the world at least for a day). I will however remain short for some time.

Current Position: STT Short LTT Short

Probable trades: STT Cut short and go long above 5711

LTT Cut short above 5761.