That`s how some observers are describing the government`s effort to stabilize the financial system, including its centerpiece rescue mechanism, known as the TARP.
About two months ago, the TARP (Troubled Asset Relief Program) was conceived to stabilize financial markets and restore investor confidence. But now it is looking so amorphous and vulnerable to political trade winds that it is has become almost a constant of uncertainty.

Things are changing so quickly, to a certain extent, it undermines the effectiveness of the actions undertaken. It makes people feel they politicians (whether it’s US or India or anywhere in Europe) really have a handle on things. They are very reactive and it`s very ad hoc and I think that undermines confidence at a time when what we need most is confidence that the officials in Washington know what`s going on and know how to address the problem.

Poor coordination and execution prevails everywhere & in every country. Together, critics argue, the problems are creating unnecessary uncertainty and undercutting its impact.

These are definitely strange times when politics is not able to provide any help to stock markets.

We have to wait for more time for things to get stabilized before starting fresh positions.
Also, we have to analyze the government intervention on Reliance Industries & Petroleum. This will be one of the factors that will decide the future of this stock in short as well as in long term.

Sunny!
...

The economy is in serious recession and will contract at a faster pace in the fourth quarter.

I am much more concerned that we may have a long period of stock market lethargy...until there`s some visibility as to how deep the recession is and how we get out of it

Market pros have been searching for a bottom ever since the implosion of Bear Stearns last February. As recently as last Thursday, a sharp rally-when the Dow Jones Industrial fell below 8,000 and then rebounded violently-had some thinking the market had finally reached capitulation.

It`s very, very clear that short of breaking that bottom it`s going to be choppy and we are going to be testing and testing.

If you really are a true long-term investors who`s prepared to go in and not look for five years, most likely you`re going to do well buying top-quality stocks. Market leaders, clean, strong balance sheets, dividends, best of breed-these companies are going to do very well. In the short term, no. This is one where you`ve got to stick to your guns and not look.


That mindset is widespread, though some advisers are taking short-term positions in the market to capitalize on what they see as a quick bounce.

Just the fact that I think we`re probably a little oversold here we wouldn`t be surprised to see a bounce. But I think any bounce would be purely technical.

There`s no leadership out there in the market yet," he says. "Until we start to see the more economically sensitive stocks--financials and the retails and some consumer durables--really start to make some outperformance, we`re still trying to weather the storm..

I am still looking at RPL … if its gonna touch 60 levels .. I will start getting in!

...

Market conditions are mixed. Here in US, Investors were initially cheered by China`s plans to boost its economy through a mix of spending, subsidies, looser credit policies and tax cuts.
Oil prices, like stocks, gave up early gains. A barrel of light sweet crude fell 65 cents to $60.39 on the New York Mercantile Exchange, after rising by more than $3 a barrel in overnight trading. There`s still a pressure on refinery margins.

Overall the trend is negative & it will stay like this in short term.

In the history RPL has reacted to the news, so in case there will be news coming in December that RPL will start its operations, the stock will react positively and break 100 levels.

Sunny!...

I think it will reach to 120 levels once the date of operations will be annoounced.
Sunny!...

Hi,

last week`s gains in the final days of October are leaving some investors optimistic that the market has put its scariest days behind it, but they are still wary about the landmines that could send stocks going up again.

"There is a saying that bear markets end in exhaustion. Day traders who profit from the dizzying turns in the market have not yet been forced out, a sign that stocks could continue to bounce around and see more late-day selloffs.

Now the trade in the near future will be sector specific as we haven`t seen the bottom yet in some of the sectors like real estate for example.

The damage in October would have been far worse, however, if it weren`t for last week`s surges of 11.3 percent in the Dow and 10.5 percent in the S&P 500. That was a marked reversal from the second week of October when stocks plunged 15.3 percent, at the time accounting for 40 percent of the market`s losses for the year.

I think in the coming weeks what we are going to see is something that will look like a bloodbath in the hedge funds in US & real estate in US & in India. Gold will shine more from these levels. It looks very exciting & promising near 700 USD levels. This would be a great opportunity to gain easy 10% from 700 USD levels.

Sunny!


...

We`ve reached a situation of absolute panic now. Systemic risk has become bigger and bigger.

Things are getting very ugly also in the emerging markets. The usual saying is when the U.S. sneezes, the rest of the world catches a cold. Unfortunately, this time around the U.S is not just sneezing, it has a severe case of chronic and persistent pneumonia. It`s becoming a mess in emerging markets as well now.

Developing nations` borrowing costs jumped to the highest in six years today as Belarus joined Hungary, Ukraine and Pakistan in seeking a bailout from the International Monetary Fund to help weather frozen money markets and a slump in commodities. Argentina risks defaulting for the second time this decade.



This is the worst financial crisis in the U.S., Europe and now emerging markets that we`ve seen in a long time.

Things will get much worse before they get better. I fear the worst is ahead of us.

I tried entering RPL at Rs 105 but bokked my loss at 99. I am happy that I did that.

Now, I don`t wanna take a chance to predict the bottom again. There`s no level to watch for right now. Let is go to the bottom on its own & for now "Continue to Sell Strength and Buy Weakness".

Sunny!

...

Yes-- This is not a trend reversal.
Eventually, the crisis will end. That has investors contemplating what a post-crisis stock market might look like. We as an investor have to picture now what the new economic order will look like down the road. Arguably, a credit crunch or recession makes all of us losers. But even in a severe recession, some businesses survive and prosper—even if only on a relative basis, and even if they take years to muddle through.

Sunny!


...

Dear Surny Chopra, slow down and recession are two different terminologies. Negative growth for two quarters means recession!!!!!!!. Regards,...

Thanks for your views about RPL....

Thanks for your views. It all depends upon market conditions - whether it remains stedy going forward or falls further again....

We`ve reached a situation of absolute panic now. Systemic risk has become bigger and bigger. Things are getting very ugly also in the emerging markets. The usual saying is when the U.S. sneezes, the rest of the world catches a cold. Unfortunately, this time around the U.S is not just sneezing, it has a severe case of chronic and persistent pneumonia. It`s becoming a mess in emerging markets as well now. Developing nations` borrowing costs jumped to the highest in six years today as Belarus joined Hungary, Ukraine and Pakistan in seeking a bailout from the International Monetary Fund to help weather frozen money markets and a slump in commodities. Argentina risks defaulting for the second time this decade. This is the worst financial crisis in the U.S., Europe and now emerging markets that we`ve seen in a long time. Things will get much worse before they get better. I fear the worst is ahead of us. I tried entering RPL at Rs 105 but bokked my loss at 99. I am happy that I did that. Now, I don`t wanna take a chance to predict the bottom again. There`s no level to watch for right now. Let is go to the bottom on its own & for now "Continue to Sell Strength and Buy Weakness". Sunny! ...

agreed sunny , but i dont see any light at the end of the tunnel just yet.. i cant even picture the post crash scenario.. L and T-300 gmr -12 ifci -8 heavens..... good grief.. Nightowl...

The company has been facing american meltdown,how could it survive in coming terms.... there is a job insecurity for the existing employees.... the company unnecessarily hiring new people and thus building larger bench which will put lot of pressure on its bottomline in coming quarters.... the recent results were ok because of rupee depreciation,do not expect rupee to fall on daily basis like our stock market.......