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Gap-Up: But Risk Appetite Waning

|Includes: INP, IWM, PowerShares India Portfolio ETF (PIN), QQQ, SPY

The market gapped up open with the big financials leading the way.

However after the first fifteen minutes the market saw quite a bit of profit taking. The selling was concentrated in the more risky sectors, especially the Russell2000 (NYSEARCA:IWM) and the Nasdaq100 (QQQQ). Clearly risk aversion is the theme; even with the gap-up open, investors are taking the opportunity to book gains.

The Indian stock market is up a whopping 17% today after the election results. Though this is a huge jump, it just brings the Indian stock markets to similar gain levels seen by other BRIC markets. However, the bullish sentiment has clearly returned in that market, and buying pullbacks may work. And for a change, there are economic fundamentals which will support the bull run; not just the sightings of green shoots.