Past 2-3 weeks,markets worldwide have been quite bullish,be it equities,commodities. The U.S and Euro zone macroeconomic data has posted better numbers.Equities rallied over 20%,with sensex sustaining above 10000 levels and nasdaq almost 1% up yoy basis.
I think things were just so bad for past few months than any glimmer of improvement/hope is greeted well. Thats what made bulls squeeze the bears recently. IT gonna take much more than few macroeconomic data for a month to improve consumer sentiment which would be the first sign of economy recovering.So,i feel,it was Just another fool's rally which lasted longer than recent ones,bears are still there to lead the market in time to come.The lows mite have been made,but they can be tested again in time to come.Another trigger for panic could be credit card defaults in US. The rumours have been in market for long but now,news regarding defaults are surfacing up.Its too early to be Bullish.Markets shall fall again before finally ralling to justified levels.
Happy trading!!
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