OUT OF I.C.U BUT NOT OUT OF DANGER

The emergency measures taken by the U.S.Fed coupled with the cooling off of the heat between the Congress and Left parties in India provided the necessary breather to the stock markets in India. It closed the week in the green for the 1st time in 4 weeks. So far so good. But the uncertainity still prevails and in my opinion this mild uptrend provides an excellent opportunity to exit the fundamentally weak and momentum shares that one might have bought recently even at losses. The risks relating to the credit crunch in the global and emerging markets and the uneasy calm prevailing in the political front continue to linger and will surface now and then to shake the confidence of the market and thereby arrest any major upmove.

On top of all these, the U.S.Fed made a surprise and riskier move of removing the cap(Upper limit) of 2 top banks(Citi bank and Bank of America)with respect to the funds they can lend to their Broking Subsidairies. This allows both these banks to lend upto 25Billon Dollars to their broking arms. Does it mean that the Fed already knows some problem or crisis that the market does not know? Should the SEC - Securities Exchange Commission,USA(like our SEBI)take note of this and tighten screws?

The Charts clearly indicate tiredness for the time being and with more & more sectors getting affected directly or indirectly leading to slow down, it is better to be with the KING - THE CASH - That is if you dont want to loose but if you want to make money - SELL SHORT AT THE RIGHT PRICES OR GO TO THE RIGHT PERSON FOR DOING SO - BEST OF LUCK