Two steps forward and one step back?

One step forward and two back. That was the mood till a month ago. And then came a spate of good news. Oil, the government, global cues......and in a flash the mood changed from pessimism to optimism (two steps forward). But as any market expert would tell you, such flashy optimism can be dangerous too, and thats what happened in the BSE and the Nifty yesterday. All cues, global and local looked positive, except maybe the inflation and the propensity to take profits. And what happened was exactly the latter. The markets opened positive on the back of the cues but heavy profit booking led it down down and out.

And to add salt to the wounds, what we have today is all negative cues globally, except perhaps the few local positives (if you read them as that) of inflation getting arrested below 12, optimism in the energy sector, and a hope things will smoothen out soon. Look out for both indices searching for clues to go up. Volatility should prevail but in taking the markets to lower levels. Overall, should ossicilate in the -2.5 to +0.5% for both markets (One step back). Further cues would be had when Europe opens for trade, but dare I say it may be a negative cue from the Eurozone? (look out for a further decline by day end) And shall I call it two steps forward and one step back? Maybe I should.