Uptrend in market to resume once Cyprus row settles: Expert

The international markets rebounded on Tuesday with the Wall Street recovering from the previous session's decline. Global markets now seem to be stable after the Cyprus bailout issue spooked investors.

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John Bollinger, President of Bollinger Capital Management feels the market still has momentum. In an interview to CNBC-TV18, Bollinger says, market went into consolidation mode during the Cyprus issue, which was a positive.

"We think the underlying momentum, condition and trend of the market is still positive. As soon as we get beyond the news from Cyprus, uptrend will resume," he adds. Below is the verbatim transcript of John Bollinger’s interview on CNBC-TV18 Q: It looks like the market has lost some momentum in the last week and though there is some rebound today, will it continue in this week as well?
A: I do not think the markets have lost momentum. We track market’s reaction to news. As each piece of news comes out, we try to judge whether it will be a bullish or a bearish for the market. We then compare it to the price action seen in the market place. The big piece of news in the past couple of weeks has been Cyrpus, which was bearish for the markets.
The advance in the markets stopped, we went into a consolidation mode. This is a very positive result for such a bad piece of news. So, we think the underlying momentum, condition and trend of the market is still positive. As soon as we get beyond the news from Cyprus, uptrend will resume. Q: Would Cyprus also explain why we are seeing the ten-year yield in the US at 1.86 percent?
A: The problem is Cyprus is a game changer. People in Cyprus have experienced the personal loss of capital but now people in other countries are wondering whether it will happen to them as well. We see major capital flows around the world, trying to preserve capital. In the normal mode, capital goes where it can experience the greatest game and that is the nature of the beast. But in these times with the recent European news and announcements, capital is now focusing on preservation and right now that means the US dollar.