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India Stock Market – The final Trap?




India Stocks: Counter Rally…The final Trap?

#fullpost{display:inline;}Global markets are rallying….why?   Citibank has been saved from immediate bankruptcy…what a ridiculous state of affairs.

Markets are built on good business fundamentals…visibility in revenue streams, visibility in economic outlook, visibility in customer health….VISIBILITY.  Saving Citibank will neither bring back corporate earnings nor economic growth for the foreseeable future.  Read the following linked article for more on Citibank:
Citi:  More than meets the eye

In the middle of this pitch black, dark fog do not rush when there is a glimmer.  The edge is close…the drop is precipitous.  Equity markets are not built on volatility and uncertainty.  Staving off bankruptcy through a government bailout is not a joyous occasion…it is a hammer on the head reminding all of us, AGAIN, these are bad times.

DO NOT believe this rally to be anything but a trap….it could be a huge rally….but the subsequent fall will reverberate and all the smiles will be wiped out completely.  And our spend-thrift housewife, also called the Indian Finance Minister, has this solution to our problems:

Recession, Banish The Thought

I bought December 2500 Nifty puts for Rs 93 as a compliment to our Finance Minister.

 

Lee’s Dhaba




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