DOUBLE WHAMMY

While the exit polls may have given a fractured verdict, the markets will not mince words when they announce a clear verdict for the bears. The markets are likely to take a huge beating in early morning trade as every one heads for the door. It’s a double whammy for the markets. The exit polls, for what ever they are worth, indicate that the markets wish to see NDA in the seat of power is not materializing. The market has built in an NDA victory and that does not seem to be a possibility going by the exit polls. Secondly the global rally in the markets is coming off. The two will combine to wham the markets, a beating it has not received since March this year.


During a mid-day con-call yesterday, we had asked investors to construct a ratio bear spread. This will help protect them. It will be in place to remind that the protective powers of this ratio bear spread is only till 3100. beyond that profits will begin to vanish and at 2975, it will be no loss, no profit. And beyond that losses will begin to happen. Unless you are buying stocks with a clear long term holding or for dividend yields, do not fish in the troubled waters. Traders should have opportunities on both sides.