MARKET SENTIMENT CURRENTLY

Be aware of these risks

>Manufacturing indices in the US fell for December. Markets think THIS is
the beginning of the R word. Wall Street sold off.

>There are terror issues in Nigeria. Weather issues in Mexico. Oil punters
say US inventories will probably show they dropped this week. They took
all these logical reasons and rocked the futures price of oil to a hundred
dollars. Note that the trader's-Desk in oil in the world does much much
more punting than in the deliveries desk of oil. The reality of physical oil
has nothing to do with its futures price. THAT is the Great Oil Game
invented and run most efficiently by Mobil+Exxon+Shell of those
years..and now they've taken into this club the Russians, Venezuelans,
Brazilians etcetera.
But oil is a risk to consider because economies dependent upon oil will
now die quicker than they were when it went from 50 to 100 dollars.

>US bond prices rose after that ISM and oil news.
Yield on the 10-year fell from 4.02% to 3.90%.
Not such good news for bondholders.
Not so good for global stocks too.
But it's still alright for our stocks.
Not such a big issue.
YET.

>Be careful of your F&O longs on 9th and 10th Jan. Most long-short
Hedge Funds will unload a bit, so will our day traders here...and all that
will see a lightening of the Nifty and Sensex too.
Not something to be terribly worried about, but why pay MTM margins just
two days before Infosys speak up?

However, ALL deliveries to be held onto.
This is a bull market.
Not one for day traders and the like.