With Asian Markets Shooting Up, can we hope for a respite – June 2010

An article by pgupta    No Comments

With Asian Markets shooting up in early trading, can we expect some quick respite from the free fall that we experienced in the past two trading sessions? At the time of writing this article, Nikkei 225 is trading 19.66 points up which is 0.21% up. BSE Sensex is 81.03 or 0.48% up. That is definitely a bullish sign.

However I would not start pumping money just yet. What happened in the US market in the past two sessions is alarmingly scary! On Friday markets fell on the news of weak hiring in May. Monday morning markets opened slightly up but then towards the end of the day, markets dipped into red zone. That has been a pattern of late. Many investors have recognized that pattern and they secure their profits in the early trading and sell off in the afternoon if the market shows bear signs. That in turn has been driving the markets even more.

European crisis are supposedly the biggest culprit in driving the markets down. I am sure US investors would let Europe sort out their own problems. However the media is not allowing people to focus on the right source of info. US has been showing signs of improved economy, however due to media instilling fear in people, markets are not able to find a solid support!

I am about 40% cash right now and depending on the market direction, I might get in sometime this week or next week. But I feel media is too doing too much damage to investors’ confidence by publicizing negative reports every day! So its better to stay off the front line and watch the fire drill.