Well, one of the toughest bearishness finally ended with the bounce back on monday, from the lows, and the gap up opening on diwali day (28.10.2008), posting 5 to 6% gains is good news for indian investors. In its first ever major move by US government to subscribe 125$ billion equity with major US banks and Financial Institutions, enthused the investors due to which US markets have posted around 10% gains overnight. All global markets have thus, found medium term bottom for now, however, the confirmation would come by next week, as US FOMC meets, BOJ decides on interest rates, major event will be the outcome of US Presidential Election result on 04th November'2008, where the mojor policy view will be known to US as well as global economies, once it is Obama or McCain will be the Next President!
VIX has closed at 70.27 indicating huge volatility a head, that too today being derivatives settlement day, we can expect two way movement. Better Stay away from trading till 31.10.2008.
One need to remember that we are in a strong bear market, and every rally will be sold into, by trapped bulls and investors. Thus, very long time investors, having capacity to hold for at least 2 years can start building portfolios, on every dip from now on.
Wish every reader and their family a Happy Samvat 2065!
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