Statements of Intent

The Indian markets rallied sharply to drive through my BUY levels of 4951. I ended the day with a long position on the Nifty. The stoploss levels for this BUY is 4936 which is not very far from the levels where I went long. If Nifty moves below those levels, I will look to cut out my long positions and go flat.

Other interesting things: The S&P has also moved above the 1171 levels which according to my way of looking at things can lead to a rally in S&P to around 1270 levels at least. The DAX has moved above my buy trigger levels and can move to 6280 at least. The Dollar Index has cracked big time. It could move back down to its previous lows. The S&P move, the move in DAX and the Dollar Index all point to the fact that risk is being sought by investors.

All this has been driven by a possibility of a solution to the European problem. The two European politicians at the helm of affairs in the two most important countries of the Euro Zone disagree most of the time but when push came to shove they ended up coming together and making common statements of intent. Their statement of intent to recapitalize the banks has been taken positively by the markets and we have seen a nice rally develop.

But statements of intent have a funny habit of remaining just that. Well ask me. I am a master in making statements of intent. Here are some of my statements of intent given in a chronological order.

- School days: I will study every day at least for an hour

- Junior College: I will not watch TV and study regularly for IIT

- Engineering (not IIT): I will not bunk more than 1 lecture per day.

- MBA: I will attend at least 1 lecture a day.

- First job: I will do at least a couple of cold calls a day and I will work hard.

- Second job: I will work hard and I will not resign in a fit of anger. Bosses are a necessary evil and I will accept it.

- Third Job: I will work hard and despite all aggravation I will work for more than 1 year in this job.

- The other 7 companies I quit: Ditto

- Everyday in the morning: I will work hard.

                                     : I will start exercising tomorrow.

                                     : I will totally follow my system.

                                     : I will spend my time fruitfully.

                                     : No Road rage. No intention to atomise the car that cut into my lane.

Given the history of my statements of intent I am not too optimistic about the future of the European statement of intent. For everybody's sake I hope that the political duo manage to do better than I have done in implementing mine.