Short-term downside risk is minimal, while the upside might take time to develop, recession, earnings, and a credit crisis are discounted.

Global markets are in the consolidation mood after falling sharply during last 1 month, what next? Don't expect any major bounce in the market, even if there is a bounce; lots of guys are waiting to short if not exit. After a short pause, one can expect further fall in the market.

Shorting Nifty or Buying Nifty PUT Option is the only way out to make money from this crisis. There is other way too, accumulate good stocks which has potential to re-gain its glory when market sentiments turns positive. Refer "5 Best Mid-Cap Stock to buy" from Mid-Cap Mela Event.

While writing this, US Stocks turned lower on Thursday after early gains as financial shares weighed, dimming enthusiasm that came as International Business Machines Corp. topped profit estimates. It seems impact on IT is yet to be felt. Indian IT companies will feel the heat of US financial crisis only during mid 2009 but stock market will factor it before.

Morgan Stanley shares plunge 25% today as short-sale ban ends. Concern about the status of a planned $9 billion investment by Japan's top bank, Mitsubishi UFJ Financial Group is still creating ripple effect and traders are going to short sale any fiancial company with even little doubt of any crisis.

As we mentioned earlier, in Europe; Iceland suspends stock exchange trading, takes control of third bank as crisis escalates. Iceland suspended trading on its stock exchange for two days and took control of the country's largest bank -- the third to be placed under its protective umbrella -- on Thursday as it grappled with a banking crisis that is threatening to engulf the entire country. This is not a good indicator, how many time we have seen a country asking for bailout?

Jobless claims drop from 7-year high but remain elevated due to weakening economy. The stock market's advance comes one day after the U.S. Federal Reserve, European Central Bank, Bank of England and other central banks made coordinated rate cuts. But any type of pull back will be short lived.

We are finally at the point where the short-term downside risk is minimal. While the upside might take time to develop, recession, earnings, and a credit crisis are discounted by the market.

-HBJ Capital Team