Mkts to be good for next few days

Fed is doing all it can and last night was good enough for the Dow. Fed cut rates by 75 bps to 2.25%. Markets will certainly start with a gap up this morning. For the day markets should be okay, because they will start strong. So it's good for a day or two, at least.

We have been in a lean patch and the hope is that we do not come unstuck along with this good news by the time we end up?

For the day, we should be okay because the news is just out and Asian markets are holding. We will start strong in any case the market look like it was due for a bit of a pull back or a pause and the Fed has facilitated that and as I said you cannot blame the Fed for not trying.

It is doing what it can and what it has to and let us see how long this global leg of the rally takes us. I think it is good for a day or two at least. For the morning let us not worry about the clouds, just a bit of sunshine after a long time.

Asian Indices:

Asia is looking smart this morning 3% up in Japan, Korea is up 2.5%, Hang Seng is up 700-points that is 3.5% and China is up 3.5% as well. So good gains 2-3% across Asian markets and one would have expected that bounce because US bounced quite a bit overnight too.

How does our market take all this global cheer?

For the day we rise with them and it was more Lehman Brothers and Goldman Sachs, which led the market back up yesterday and those numbers might have been a bit of relief. So the financials rallied quite hard and more than the 75 bps, I think that might have been the reason, why there was such a sharp 400-point rally in the market out there.

Generally those markets probably were a bit oversold and in the near-term were looking for a bit of a leg back and we have got that. Is it end of the pain? -I doubt it very much but atleast in the near-term we might get little bit more of a bounce. The sad thing is that we are shut for the next couple of days, so if this global rally intensifies over the next two days then we’ll probably, will not be able to react to it and these days things last only for a day or two. So you have got to take those rallies when they come, by the time we come on Monday who knows what the picture would be.

The Fed is trying it’s best to at least sentimentally support the market. Let’s see how far it is successful. For the moment I think we have got a bit of a bounce on our hands.