Is US Markets making Fool on Fool's day : April 1st 2008

source : CNN

Is US markets making fool of everyone ? Not sure, but today its green everywhere on walstreet. Dow up by close to 400 points and NASDAQ up by 83 points on Tuesday, which is 1st day of the second quarter.

Triggers:
1.stronger U.S. dollar
2.better-than-expected readings on manufacturing and construction
3.signs of recovery for the hard-hit financial sector from credit crisis
4.Lehman Brothers is raising cash and the fact that both UBS and Deutsche Bank announced writedowns
5.U.S. light, crude oil for May delivery fell 60 cents to settle at $100.98 a barrel
6.COMEX gold for April delivery fell $33.30 to settle at $882.90 an ounce
7.The dollar rose versus the euro and the yen.
8.UBS subprime woes
a. writes off $19 bn
b. Q1 loss at $12.1 bn
c. Chairman resigns after loss announcement
d. to raise $15 bn via rights issue
e. to hive off ailing biz into separate unit
f. The syndicate of banks that are going to back the rights issue have put an end to stock lending

Impact on India : With these good cues from US, Indian Market should open with a gap up. We might see 200-250 points up in NIFTY, which can become another opportunity to sell few of the stocks for a re-entrant at the later stage. Also, we might get a chance to buy PUTs on either 5000 or 5100 levels for a decent premium. The sector to watch out today is STEEL on account of news related to price cut upto 20%.