Monday

Monday Update: NIKKEI Long

Post a Comment September 28, 2009 – 12:48 am |   | Permalink |  Print This Post |

We just opened $5/point NIKKEI long at 10050 (sharp drop of 2.3% from Fridays close). Please do not get us wrong - we are NOT bullish. This is purely risk management against our short NIFTY. Japan’s NIKKEI is getting punished more than any other markets again. Australia 200 is also down 1%. We are looking forward to NIFTY opening today - will not be surprised if it maintains its momentum up. Have patience, the top often takes time to roll over. Whether the drop in the last few days is a fake decline to suck in more bears or a real decline to punish the bulls, it is impossible to tell. Our indicators suggest that the rally is ripe for the picking. That said, the NIKKEI rally does not look complete - hence our long Nikkei hedge.