Dow below 10,000

Time to buy? Perfect for a short term bounce now? Yes, I see the Indian indices going lower than this; but that doesn't mean it will go straight down.

Two 4% down days, and the last 10 days have seen a fall from 4300 to 3600. It could just be that the index will move up. Yet, I could be horrendously wrong here - today there was simply no turnover in the cash market - just 10K cr. Which means the selling isn't shorting - it's selling. Shorting means a cover will drive prices back -the lack of shorting = nothing to save the index.

A CRR cut and PN reparticipation (Sebi has removed restrictions on PNs) should help the market. Yet, this is not a normal market and will not react normally. So expect anything. I am long at this point - a position I will eventually build as the markets go down further.

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This entry was posted on Monday, October 6th, 2008 at 2:52 PM and is filed under Crisis2008. You can subscribe to any comments to this entry via RSS 2.0. You can leave a response, or trackback from your own site.