This is the world of Stock Market

Date : 19th September, 2008.........

Venue : World Stock Markets........All across the globe

Result : 5-17% up

Funny is this world........Only the day before, the entire world was crashing under the debris......The financial capital had collapsed.....All markets were trading almost at their 52 week lows or even much below than that.......24 hrs since then.......nothing changed.......Except the numbers and the tickers.........All markets have bounced between 8-30% since then.........Almost 14 emerging markets have hit upper circuits.........Shanghai, HangSeng, Austrian ATX, France's CAC......Russia was 17% up in a single day.........Many countries have not risen that much in decades.......What a Historic Day !!!!!!!!

In my previous posts, I said that sometimes when everybody go short, markets recover and exactly that has happened........This time very few people on the street were going long.......Panic was all around......Everybody could sense that......All were expecting bloodbath after yesterday's initial fall.........And thats when the SMART people smelled opportunity.....Its true that the FED and all other central banks infused liquidity to such a large extent....followed by SEC's decision to ban naked short selling in 799 financial stocks in US boosted the sentiment to a large extent......

But let us not get over excited (I know nobody is excited this time because most have missed the rally and probably none is expecting the rally to be continued this time)........We have to remain cautious and trade in low volumes.....It is better to trade in options......The premiums are quite reasonable there........