US markets have rallied on the news that the Consumer Confidence index has shown an uptick, though marginally, where most analysts and economists were expecting a down tick, which pushed short squeeze. Another shot in the arm for US investors was cooling of Crude to 120$ intraday, on strengthening of US dollar against Euro, on the announcement of OPEC president that demand destruction is visible, as the crude doubled over a year, due to over speculation in the commodity, and his assurance to keep the supply at current levels, which shall bring the crude to 78$ levels, once the excesses are out of the commodity positions was really comforting. James cordier, Option sellers.com observed that currently 'short positions overweigh the longs' on commodity exchanges where crude is traded, suggests further fall in crude prices, is a very sweet news to equities world over. Another research report by Mr.Nauman Barakat also supports this observation. Well, US markets rallied over night and recovered the losses registered on monday, and the same are having rub off effect on asian markets today.
Singapore Nifty futures are currently quoting at a premium of 81 points, indicates strong gap up opening for our markets too, a head of derivatives settlement tomorrow. Volatility can be very high today as VIX closed at the highest point yesterday at 61.73. Gap up and Gap down openings cannot benefit intraday traders and small investors, unless one is having a favourable overnight position, and is a professional trader, using sound technical analysis and fundamental knowledge.
Closing of all favourable outstanding positions today itself may not be a bad idea, because, which news can bring the markets down or take it up next day has become most unpredictable, in these uncertain times.
Happy trading and investing too! Strategy for tomorrow and next month series will be given around 02.00 p.m.today through a separate posting!
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