What is happening with the stock exchange in the last two days?
The stock exchange has been closing with high increases in the last two days and to me it looks completely irrational. Right now it is clear that the impact of the virus has been greatly underestimated and that it could be greater in USA with respect to Europe. Despite this incertainity the stocks exchange has been closing with high positives in the last two days. Why is it so? Did we already reach the bottom and are we stabilizing? What do you expect in the next 3 months?
Looks like a bear rally:
https://www.investopedia.com/terms/b/bear-market-rally.asp
Some previous bear rallies have lasted for weeks (like in 1933)
There are some strong forces in the future including 5 trillion dollars in stimulus, a bottom forming in energy, and Saudi Arabia folding its hand (cards) within the next month. And of course the virus and its mostly predictable and a few unfathomable and unpredictable outcome possiblitys.
It's a fake out wait for the pull back. Maybe tomorrow when they announce the jobs number. Today the DOW fell by 800 points to close. Most the major stocks were hitting strong resistances and failed. This looks like a pull back to me. I was short on $DIS and getting hammered but it still looks like that may pay for Apr 17.
Let's see how Friday closes. We need to close above resistance levels for key stocks/indexes.
Markets are highly volatile and largely driven by emotions. The impact is not yet fully seen and will manifest in the next 6-12 months. In the short-term, cash is the most valuable asset. In the long-term, it doesn't matter as much.
Can anyone tell me why stocks are up after 3.2m new jobless people as of 3/21, and 10 year treasury yields are down? It looks like people are rushing towards both stocks and 10 year notes.
People like me are buying.
Because people will still pay interest.
And even if some "bailout" happens the money will go straight to the banks.
So why not buy a very discounted financial institution now and then get the rise on stock by govt bailout?
| it looks completely irrational.
yes
We now have several rapid diagnostic options including disposables. There is much less cloudiness on the scientific front. I’m not sure why else.
shorts taking profits.. remember, you have to buy to close a short position.