India Markets: Impact of yesterday's Market Crash

Tuesday, December 02, 2008

Another market many will we see in this cycle...well we know it cannot go below zero!  Volatility is the only sure fire thing now...lots and lots of volatility.  Keep a steady hand, a long view and stick to principles.

Today I expect to get a below 2500 print on Nifty...I will cash my calls and puts...and wait for the volatility to bring them back into range to put them back in the Dhaba portfolio.

The only approach to this market is discipline and flexibility I mean the willingness to have a zero risk position and the means to make it happen.

Yesterday's market:

S&P   (8.93%)
FTSE (5.20%)
CAC   (5.60%)
DAC  (5.88%)
But today, during the inevitable market decline, I will increase risk; contrarian to the core.  I have been forecasting a liquidity event for a long companies seem closer and closer to the abyss...something has to give.  Is a bankruptcy looming?

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