Tuesday, May 4, 2010

Sell in May ??? Not right away !!!! D-Street to open positively

US Markets recouped most of their losses encountered on friday. Greece Aid and consumer spending pushed Indices to a big gain, taking the Monday's tally to 10 positive closings of the last 11 sessions on Monday .

Metals - Austrailian Impact : Sesa Goa was crushed yesterday, thanks to a 40 pct tax tax proposal by Australia. Global commodity prices tumbled on the news. We expect the weak sentiment to continue for some more time.

Chine Bubble : Investment Guru Marc Faber is predicting a chinese property bubble to burst in the next 6-9 months.

India PMI : HSBC Purchasing Manager’s Index (PMI) fell for the second consecutive month in April, as operating conditions improved at a weaker rate during the period. We term this as saturation period instead of a slow down. Economy is ready to take off but wait for a cool off...

Stay away from metals pack while midcaps still look hot. Let us see whether "Sell in May and go away" works this year !!!!