Wednesday, August 20, 2008

Remember, the NSG will meet on Thursday

As the Nuclear Supplier Group meets on Thursday to decide on India specific nulcear safegaurds, we should be prepared for a sudden euphoric rally in the market.
Now, the understanding is that the NSG will approve the safegaurds. Thus, this news should be discounted. But, in the short term, a sudden euphoria could easily see markets move up. If you are long, then such conditions are perfect to take some profits. If you wish to buy, then buying in euphoria is not a good idea.
Sometimes, the market gets disconnected from reality. The impact of inflation is real, but the market ignores it. While the benefits from the nuclear deal will flow in after maybe 10 years, or more. Yet, the market behaves as if the deal will produce milk, honey and gold from today itself.

An earlier post on the market is below. Just move your mouse.

1 comment:

vivek said...

Hello Sir,

Market is unpredictable beast. it hardly gives a damn for anything & for that matter anyone. that's why its very important to have a trading plan (which includes entry and then exit with a profit or exit with a predetermined loss) and discipline to follow your plan no matter what.

Rgds.

-Vivek.