I can see a Sea of Red

Its a cloudy morning here in Bangalore and globally the scenario is getting gloomy day in and out. Over the days we have been hearing more and more of issues like Sub Prime. Yesterday, we started off well and within minutes we were around 200 pts up. Afternoon stuck and Europe opened, BNP Paribas which happens to be a big bank in France came out with bad news and froze funds with more than 2b$ operating in mortgage markets in US and then came the cut.

Today morning also, the global cues are pathetic. Most of the Asian markets are down by 2% or more and if you ask me, i would say that this is beginning to be a can of worms now.
Everday we are hearing new things, we learnt about Sub Prime and now today morning i heard on CNBC that there is some issue with the Quant funds. These are some of the things which i really dont understand and claim to be an expert.

Its obviously not a bubble like the tech bubble but its in excesses and the market will surely make you pay for the excesses.
The mantra stays the same, we for sure need to be very careful about the investments.


I will write more laters.
Cheers,
Vaibhav

Indian Markets: What Next?

Its a good morning today, ASIA is up around 1% and we did have good cues from the US overnight. Post the FOMC meet, things have actually started looking good. The guys in the US who were actually leading the slide have started to move up; Lehman Brothers, Morgan etc... Fed has clearly said that OK, we do agree that there is a problem in the sub prime area but its the inflation that the fed is more worried about. And if FED says that they are concerned about the sub prime but not that much, they should be taken seriously.

For near term the cues definitely look good. Yesterday was for the last time in the last few days, FII's went out and bought a lot of nifty futures. A lot of shorts got covered.But that clearly doesnt mean that we wont have less volatility from now on. For sure that still is going to be there but in the near term it looks good. My opinion is that if the global cues dont induce more volatality, we can for sure touch new highs.

The thing is that we never know what the global situation turns out like. Just give it a few days and lets see how it turns out. The markets have there own ways, they move in manic manners.

My mantra for traders would be that be very cautious. Trade in small lots even if that means taking home a little less.
For investors its all about buying quality stocks and riding the wave. During the last 10 days we have for sure found a lot of stocks which meet such criteria.

Happy trading and investing. :)

Cheers,
Vaibhav

Fed keeps the rates unchanged

Its a cloudy morning here in Bangalore and overnight FED has declared that it will keep the rates unchanged at 5.25%. As i read the FED report i get a feeling from reading the report that its the inflation which is keeping the FED worried and not the US Growth.

Asian markets as i write this, are up around 1% and the news from FED has actually gone well with the ASIAN Markets especially.
There were no great RED Flags raised by Fed.

This morning, i believe we definitely have a good cue from the US and all the other major emerging markets.
Lets hope that our markets also take it well.
Cheers.
Vaibhav