Dust off your bear coat!

A bad day for the US markets today. Both the DOW and NAZ down 1% and S&P500 down 1.32%. As said in a previous post, the previous high is acting as resistance. The DOW hit 13741 before reacting from there.

That being said, we feel this is not the start of the correction that we have been anticipating. The volatility that we have seen over the last 2 weeks indicate that the top is close by.

The Blackstone debut tomorrow should make things interesting. 13400 should offer support and only on the breach of that should we get the bear coats out.

The Nikkei, meanwhile, is holding out well.

India:
The weakness in the US today should get us off to a bad start tomorrow. With the listing of the DLF IPO, real estate stocks will see some interesting action. Gapup on Wednesday at 14300 should offer support for any weakness that we might have today. We have nothing to worry right now and we maintain a hold on existing positions. The bravehearts can initiate a buy-on-decline strategy.

The important thing right now is to watch the bounce on the DOW tomorrow.Just dust off your bear coats, don't wear them as yet ;-)