Market Stocks Rally finds Fundamental legs to sustain in the Short Term ~ Take Advantage even if you are nervous about the Long term
On September 7,2012 last week I had bloggged about Important dates in September and Indications are not to Short
Favourable Announcements by German Court for ESM and Fed Governor Ben Bernanke for QE 3 provide a Fundamental leg to the developing Rally in the Short term ~ Take Advantage of it
Call me on 9820162597 if you’re serious and convinced of a short term rally in Equities to take advantage of it and come aboard with us ~ After January 2012,this is the second chance this year ~ then the rally was really short lived for a month or two ~ this time the period should be longer
Yesterday the Fed Governor,Ben Bernanke announced a slew of measures that would be termed QE 3 ~ The US Government will continue to buy @ US $ 40 billion of bonds every month ~ that’s US $ 480 billion annually ~ lower than the US $ 1.8 trillion in QE 1 & 2 ~ GDP Growth Forecasts have been upped to the top end of 3% and 3.5% for FY 13 and FY 14 respectively ~ Interest Rates will be kept near Zero levels till mid 2015 to facilitate an Economic recovery by stimulating Demand
US Stocks reached a 5 year high yesterday
Dow: 13,539, +206.5, +1.5% ~ 5 year Highs
S&P 500: 1,459, +23.4, +1.6%
NASDAQ: 3,155, +41.5, +1.3% ~ highest level in 10 years !
Earlier Day German Court allowed Germany to financially support the European Stability Mechanism (ESM) ~ that was a big relief for the Eurozone as without Germany the collapse was certain
India on cue opened up 2% this morning as Sensex zoomed up over 400 Ponts to 18500 levels and the Nifty over 100 Points to cross 5500 levels led by strong gains in banking and Oil Stocks~ there may be some tempering today from these levels but after a long time this year the markets are justifiably excited for the short term
On the Indian Front the Government is planning to move ahead with more FDI Reforms ~ today they meet again on Aviation ~ Multi Brand Retail is expected sooner than later ~ On Monday if RBI supports the Government, which just raised Diesel Prices by Rs 5 last evening and put a subsidy cap to six LPG cylinders in a year per family, by reducing CRR,we could see stronger legs on the Rally which is also being supported by increasing FII Inflows
So for the Short term the Bullishness will prevail and Stocks should remain buoyant for the next few months atleast unless we see really ugly geopolitical problems in the Middle east destabilising Oil pricing ~ The China Slowing Down Problem will be deliberately ignored for the time being
Cheers ! and All the best !