Which way is the Sensex heading??

The last 2 trading sessions have been quite rosy for the U.S. markets. The Dow Index, in fact, recorded its highest 2-day gain in the last 5 years! The Sensex, which had been so far responding to cues from the Dow, seems to be sharing none of the current euphoria! Sure, the markets have opened on a high in the last 2 sessions but the way the market lost its gains in the wee hours of the session suggest that investors remain wary of the euphoria being exhibited in the U.S.

Maybe, it has to do with the gold & the oil prices and the Re/$ rate; maybe it's plain and simple aversion to the euphoria on display! Or maybe it's got to do with the fact that the Indian economy is "insulated" from fallouts in the U.S. economy! The Sensex clearly is not giving any signs of going up; maybe the ride down from the dizzying heights touched in October has taught investors to exercise caution!

I actually like this caution; it seems to suggest that sentiments aside, the fundamentals need to justify any future growth. We won't go up just because everyone around us is going up and fine, we'll heed global cues but we'll chart our own course too!! However, I'm sure, many of you feel quite the opposite as well. Quick gains are welcome any day, but for an economy to mature, we need to rein in our sentiments and reward the underlying fundamentals!

I might be completely off the blocks for all I know but this, only time will tell! Wait & watch; stay hooked on to the ride because it's so so SenseXXXational!