Golden Days

Apologies for making all of you who were eagerly awaiting my note, wait a bit longer than usual! (Actually by qualifying the above statement with "eagerly awaiting my note" I have ensured that no apoligies were necessary!) In any case here goes the rest of my note....  Miracles do happen. Nifty went up along with the rest of the world as the Swiss Bank brought out heavy artillery and decided to weaken the Swiss Franc. They have drawn Euro Swiss Franc line at 1.2000. (I am not sure that it is a good idea to throw such precise numbers. They do tend to get attacked and tested by the markets) It is another matter that CAC and DAX gave up all their gains after Indian markets closed. However, some data in the US came out better than expected and the US markets were able to claw back losses of more than 2.5%. In all this, I am a lucky man. As I said in my note yesterday, I cut my short positions when Nifty traded above 5045. Given the opening we got today, I saved at least 50 Nifty points notionally.                 

I am not yet long. It is because my system dictates it be so and not because of any preference that I have for any one side of trade. Unlike what a few of my friends believe, I am not biased in favor of short positions! If nifty trades higher for another couple of days then possibly my systems will give a buy call. Till then I am waiting for a fresh sell trigger to emerge. As of now I will sell the Nifty futures and go short if nifty futures trades below 4930. It is a long way off and hopefully I will not get triggered.

There were three so called safe havens in the world. Swiss Franc, Japanese Yen and Gold. With one of them falling and with the likelihood of similar intervention by the Japanese, rational thought should lead us to expect that Gold should shoot up after an initial burst of selling. Is Gold now on its way to USD 2200?