Political Conviction

 Thank God, Merkel and Sarkozy are convinced that Greece will remain in the Euro. If all that was required for Greece's and consequently Europe's problems to vanish was conviction on this pair's part then we could all have been saved a lot of heartburn and sleepless nights a long time ago. Euro actually popped up after this statement and stock markets are up too. Unfortunately politicians are slaves to opinion polls and therefore change their convictions as often as we change our clothes which is like saying that they change their convictions on a daily basis. So while we know that Merkel and Sarkozy want Greece to remain in the Euro if all went well, we can also be reasonably certain that they can dump Greece tomorrow if the situation so demanded.

Do you remember the DAD in Calvin and Hobbes? Calvin tries regularly to get certain sweet deals based on fabricated opinion polls. But Dad always knows what is good for Calvin and what builds character and is almost never swayed by the poll results. If only all politicians had the strength of conviction and the character to take hard decisions based on what they believe is right rather then what is the ever changing opinion of the majority.                          

Having vented my feelings on the poor politicians of Europe who have an unenviable task on their hands, I revert to the task at hand-which is to worry about what to do with my short position on the Nifty. I continue to remain short and will cut my short position and go flat only above 5160. Yes you have read it right... it IS 5160 and NOT 5060. Until then I grit my teeth and remain short.