We have seen an usual rally in Indian markets,usual in a way where its positively correlated with East Asian Indexes like shanghai and hongkong exchanges..after post lunch it generally align with European markets, But what is special today in today's rally is we were down by -.5% in morning and once Europe opened in Green with .5% upside , we went 1.2% Green all of sudden that mean around more than 100% in nifty in few min...and u know whats happening in Europe right now...its -0.6% down, seems the reason they gave is dollar index going up and Europe in negative...now it seems US is also joining them in RED, out of all world markets Indian markets closed in GREEN with huge upside ..(that's cool right)..but not me..me shorted on market this evening...keeping fingers crossed for now..
And coming to Dollar index..why is this getting all the limelight these days, reason is Dollar went down index 80 and still FED is not going to increase the rates and all the dollar value is going down
First Question why dollar going down? IF dollar goes down whom will it help? why Equities are going up..though i know that right now they are inversely correlated from 2000.., Why are they supposed to be inversely correlated? why is FED happy to keep dollar low? do they want to increase their asset value and clear the bad debts? and come clean again..am afraid this is the reason?
And one more questions came up to my mind..why obama visited China and i guess Singh is also going to US? any relation? Till now i couldn't find any..But will find out sooner