Another Stock Market Bubble?

First the news:

The Sensex rallied for the third consecutive session led by buying across all the sectors. It surged over 800 points and the Nifty nearly 249 points in the last three sessions to close above 15,600 and 4640 levels, respectively.

The Nifty has moved from the lows of 2500 levels in late 2008, to the current 4600 levels.

Meanwhile across in China,

Guo Shuqing, chairman of the nation’s second- largest bank, told reporters in Beijing today. “There are uncertainties in the economy and bubbles in the capital market,”  “China’s banking system still has excessive liquidity.”

and now some news from the US.

A prominent banking analyst said on Sunday that 150 to 200 more U.S. banks will fail in the current banking crisis, and the industry's payments to keep the Federal Deposit Insurance Corp afloat could eat up 25 percent of pretax income in 2010.

Richard Bove of Rochdale Securities said this will likely force the FDIC, which insures deposits, to turn increasingly to non-U.S. banks and private equity funds to shore up the banking system.

"The difficulty at the moment is finding enough healthy banks to buy the failing banks," Bove wrote.

I have been skeptical of this rise since it began read the post here.

and still believe that this is not the market to be investing in. If I had to make fresh investments, I would wait for the next panic.

As short term traders, we are doing good.

So, what is the short term prognosis ( for traders ). You can expect to see the 4700 levels within a few sessions. More predictions, after we touch 4700 levels.

In the mean while optionwala is planning a futures trading service plan soon. Will keep you informed.

Good luck with your trading!