FRIDAY 10 OCT 2008

Don't do bottom fishing because recovery could be delayed. Wait for the week to close.

For example, Reliance can go down to the levels of 1300 in the medium term and stay in that range for quite some time. Shanghai can also move down to 1500 levels in medium to long term though, recovery in India and China would be earlier than their compatriots world wide. But there is going to be a dearth of confidence and money for the markets. Technically, the DOW and NIKKEI in particular have gone down too much. FTSE is also expected to close down below its hopeful level of 4300 today. If these power houses of economy are down and out then the future of world markets is imaginable.

We are in safer zone as long as Nifty is holding above 2900 levels.

Gold is about to break its resistance at $920 and set out on its long term journey towards $1200 with a midway stop at $1000 for some time. Crude Oil would be cooling its heels in the face of slowing economies. Emerging economies may benefit from its cooling. 

Please watch out for the words like NEAR TERM, SHORT TERM, MEDIUM TERM AND LONG TERM ETC. because mis reading of these words can cause untimely moves and wrong speculation.