It is becoming difficult for DOW to get to new highs. Plus Ericsson warned majorly today. Yahoo is reporting today, and if previous quarters are any guide it will be a mess. Tech has been outperformer in the last month (see Nasdaq). If tech takes a hit today, then we have a problem. Then oil is also touching $88.
Note that when I mention in the previous post that oil is going to $60, it is pure speculation. I am not an oil analyst and have no clue on inventories of oil etc. Speculating is a useful art that I am trying to learn.
Tata Power went up by 20% today. Look at the difference between the valuation of Reliance Energy and Tata Power now. One can argue that Tata Power can also set up a subsidiary like Reliance Energy is doing with Reliance Power and get the same crazy valuation. I am speculating on Tata Power tomorrow.
This is getting crazy by the day. $5 billion companies gain 20% on no news.