America goes up on Intel, India goes up inspite of Infosys.

Strong Intel earnings sent the global markets to otbit. The bears were slaughtered. But, what about earnings in India? Infosys did not give much promise, yet Indian markets have followed the world by moving up.

The American and European markets have been reacting to good news by going up and bad news by going down. In India, “All the news is good news”. This is what happens in bull markets. We are in such a market.

What is likely to happen? Well, in uptrending markets, prices go up, as has been happening in India. The markets will see a correction – this is inevitable, but we do not know, when and how.
Meanwhile,
BP decides to wait for a few more days before taking new steps to close the well.
Moody’s downgraded Portugal debt, but Euro was almost unchanged, above 1.27
Gold has performed as well as the S&P, adjusted for inflation. Here is a chart that says so.

Breakouts must be respected

The Nifty has broken out of a 15 day trading range. Any breakout, up or down must be accepted as the wisdom of the market.