Day Trading Stocks & Futures

Why is dow up 1,000 points?
Many reasons, few of them are as under :

1) Huge liquidity injected by central banks in world markets.

2) Traders and investors have realised that the excessive negative reaction in March 2020 was overdone.

3) Economies are opening up and we have to learn to live with Corona virus.

4) US 10 years treasury yield is less than 1% so US pension and insurance funds have no other alternative to invest in equities to generate returns for their investors.

5) India as well as world markets have realised that Corona has killed economic growth for 2-3 quarters but not for 2-3 years.....many industries are back to 60-80 % of pre-lockdown production levels and pent up demand is lapping up the production creating shortages in the distribution channels.....in this process efficient companies will grab the market share from less efficient companies.

Smart_trade
 

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