We make new highs!

Contrary to our bearish views, the DOW zoomed past the mark that we were watching - 13710 to 13870 and closed at 13860.

At this point, we still remain bearish and though the indices don't look like stopping, we will remain on the sidelines. Our short of AKS is in the red by abt 5% and that remains our only position.

India:
We have had a beautiful start to the day. However it has opened with a gap-up and this marks the exhaustion gap. We should see some weakness here. In addition to this, it is now at the rising channel and should come down from here.

We bought a few more options yesterday and our average on all the option is now 74. Though the exhaustion gap is a bearish sign, we are not sure if we need to add onto our positions as corrections usually don't begin in the third week of the month. In case we decide to add onto our positions, we will update the same.

Since the Index has crossed the 15100(Sensex) and 13710(DOW)mark, that we were observing, it is really something unexpected. We don't see a reason to enter the market right now, apart from going short. Since the market seems to have a mind of its own, we will keep our short positions light.