Mkts in the midst of a nice little global upmove

Asian Indices:

Asia is good this morning as you would expect because the Dow has had a nice little run overnight, so the Nikkei is up nearly 2%, Hang Seng is up 500 points, Korea is up 1%, Taiwan is up a 0.3% good going across Asia, a couple of those markets are quite strong today.

On global cues and take-away from the Fed:

Pretty good, I can see there is a dollar rally happening there, people are a little confused about whether there will be more cuts or not but the moment its okay 25 basis points another cut has come. The Fed’s sounding a little bit more optimistic the economic data is bad but it’s a bit better than what people were expecting. That GDP number of 0.6%, the negative tick or a green tick, it psychologically makes a difference.

One of these quarters now, we will get a red tick I am sure and that my psychologically de stabilize people a little bit but it has not come in this quarter which has gone down positively and which is probably why you have seen that rally yesterday. If you look at the other economic data, ISM still sub-50, jobless claims at 3.8 lakh higher than expected, construction going down, housing going down, so it looks like at some point there will be another leg down but when that happens and if that happens we don’t know, for the moment the market’s strong.

If one looks at how the various indices are moving, the Dow above 13,000, S&P above 1400, looks like there is still little bit of juice out in this rally. That’s what the screen is telling you so I won’t be surprised if there is a 4%-6% more in this global market up move just in the near-term, entirely possible.

contd on pg 2..