Commodities did not have as much fun as expected after the Euro strengthened on further bond buying introduced by the ECB. Oil is still at pretty high-ish levels at 5280 but you should probably watch out as liquidity concerns going away and its virtual peg to gold meaning buoyancy for Oil prices.

Gold will remain a long but for now US Treasuries and Gold may join Silver in a sell off as non one has the latest in demand assets, i.e. Italian and Spanish 10 -y and smaller maturities which have jumped 5-10% since yesterday's announcement. nifty is hholding the morning's 5320 levels and will likely cap the long rally in anothrer 100 points. Of course the buoyancy meanas long intra day trades for those who have the time and the capital

Indian markets are going to get insulated from being "corrected for premium and over valuatiion " though as China struggles to put a recovery in true perspective and is likely joining others in a recession. ECB also marked down Europe's growth targets to 0.5% for 2013 and Inflation to nearly 3% and 2% for 2012 and 2013

Posted via email from The India Investment Post