I have noticed something in the last few months. The Europeans have met to resolve the crisis several times. From all those meetings they have emerged claiming that there is a consensus that the crisis needs to be resolved and that they will do so by the next meeting. As if you need a meeting to develop a consensus that a crisis needs to be resolved! Every such statement has led to a disappointment in the markets.The only advantage we have now is that the next meeting is on this coming weekend which means that there is a possibility that the markets will wait for that meeting to show any disappointment!

The fact that I gave a positive spin to yesterdays developments at the G20 meet reflects the fact that I am long on the Nifty. I will cut my long positions only below 5055. Will not look to go short today.

This week happens to be a make or break week for the markets. We all know by now that 5150-5200 is a very strong resistance to the rally in the Nifty. If we cross those levels this week then we should be fine. As I said in a previous note, once the Resistance is common knowledge then the chances of it getting broken increases. If I were a betting man, I would bet on that happening.