Dollar Higher
It Is All About The Dollar
Does any takeover, or economic news in the market really even matter anymore? Today, Microsoft Corp.(NASDAQ:MSFT) bought Skype for $8.5 billion. The stock market does not care about that deal. The stock market only cares about the U.S. Dollar Index. If the U.S. Dollar Index dips or declines the major stock indexes will trade higher and vice versa. Nothing else even matters at this point. Wall Street simply wants to know if the inflation rally is still on or is it off.
Last Friday, the government reported a much better than expected job report. The major stock indexes soared higher after the announcement. However, once the U.S. Dollar Index traded higher that rally faded throughout the day and the major stock indexes barely closed higher on the day. The Wall Street computer algorithms are programed to trade inverse to the U.S. Dollar Index. Often the major stock indexes will trade inverse to the U.S. Dollar Index tick for tick. The same type of action can be seen this morning and it is not yet 10:00 am EST right now.
Everything inflates higher when the U.S. Dollar Index trades lower. The entire stock market rally from March 2009 has been on a weaker U.S. Dollar Index. In fact, the only corrections that the stock market has seen have been when the U.S. Dollar Index rallied higher. Oil, gold, silver, copper, coffee, cotton, gasoline, and almost every commodity except natural gas have benefited from a weaker U.S. Dollar Index.
The problems in Europe do not seem to be going away anytime soon. Greece is looking to possibly leave the European Union if they do not get more favorable borrowing terms. The problem is that if Greece does get new borrowing terms countries such as Ireland, and Portugal will also look to get more favorable lending terms. This is just another domino effect that will take place in the European Union. Should all of this transpire in Europe over the next few months then the U.S. Dollar Index could actually trade higher. Hence, when the dollar is higher the inflation rally over.
It will be very interesting to see how the central banks are going to handle this situation. Obviously, they will need to keep the U.S. Dollar Index down at all costs in order to keep asset prices inflating higher. Right now the CME continues to increase margin rates on many of the leading commodities in order to keep these prices from climbing. We shall see how they try and accomplish this task in the coming months.
Nicholas Santiago
InTheMoneyStocks.com
About the Author
Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.
The Saturdays – Work / Issues / I Need A Dollar & Buzzin’ / Higher – T In The Park 2011
|
|
Hamilton Beach Digital 4 Slice Toaster $49.99 Digital display shows toast shade setting at a glanceBagel – defrost & cancel functionsSlide-out crumb trayAutomatic shutoffSmudgeproof brushed finishExtra-wide slotsToast boost… |
|
|
Globe 48412 13-Watt Ultra-Mini Compact Fluorescent Spiral Bulb (60-Watt Incandescent Equivalent), Cool White, 4 Pack $13.33 … |
|
|
Globe 0790401 12/20/26-Watt 3-Way Compact Fluorescent Spiral Bulb (50/75/100-Watt Incandescent Equivalent), Soft White $13.99 … |
|
|
Wal-Mart: The High Cost of Low Price $8.78 Everyone has seen Wal-Mart’s lavish television commercials, but have you ever wondered why Wal-Mart spends so much money trying to convince you it cares about your family, your community, and even its own employees? What is it hiding? WAL-MART: The High Cost of Low Price takes you behind the glitz and into the real lives of workers and their families, business owners and their communities, in an … |
|
|
What’s Happening!!: The Complete Third Season $4.95 THE FUNNY FUNKY LATE-’70S COMEDY CLASSIC FEATURING PALS RAJ,DWAYNE & RERUN, RAJ’S BRATTY LITTLE SISTER DEE & SASSY SHIRLEYHAS ARRIVED ON DVD…. |
|
|
The Takeover $1.99 … |
|
|
ROC Multi-Correxion 4-Zone Daily Moisturizer SPF 30, 1.7-Ounces $14.50 SPF 30. UVA/UVB sunscreen. Exclusive fusion of RoC Retinol + antioxidants. By targeting the 4 zones of the face – smoothing deep forehead wrinkles, reducing signs of aging around the eyes, re-invigorating luminous skin on the cheeks, and improve firmness along the jawline – it’s possible to dramatically improve skin’s beauty. RoC MultiCorrexion 4-Zone Moisturizer SPF 30 is an intensive, anti-aging… |
|
|
Combo: Tenergy T9688 Smart Universal LCD Battery Charger + 32 Premium NiMH Rechargeable Batteries (12AA/12AAA/4C/4D) $94.88 Tenergy T-9688 Super Universal LCD Battery Charger with USB Port * Built-in USB outlet (with output of 5V DC 500mA) – can use to recharge and power up your personal digital devices (e.g. mobile phones , iPod, MP3/MP4, PDA, portable game devices etc.). * Powered by an external AC adaptor (100-240V AC) for worldwide use. * Automatic charge and discharge function. * Automatic charging… |
|
|
Aveeno Positively Ageless Correcting Tinted Moisturizer SPF 30, 1.7 Ounce $10.50 SPF 30 UVA/UVB protection. With vitamin C. Instantly helps even tone and texture with natural-looking coverage. Reveals youthful, healthy looking skin. Active Naturals Natural Shiitake Complex. Oil-free – non- comedogenic – gentle enough to use everyday. Reveal the natural beauty and youthful energy everyday with Positively Ageless Correcting Tinted Moisturizer with SPF 30. Formulated with Active … |
|
|
Hifonics Brutus BRZ1200.1D D-Class Mono Block 1 x 450 @ 4 OHMS, 1 x 900 @ 2 OHMS, 1 x 1200 @ 1 OHM $134.33 Brutus Series Monoblock Class D Car AmplifierRms Power Rating (@ 14.4v): 4 Ohms: 450 Watts X 1 Chan.2 Ohms: 900 Watts X 1 Chan.1 Ohm: 1200 Watts X 1 Chan.Mosfet Power SupplyWired Hfr-3 Remote Bass Level Control IncludedLed Power (green) And Protect (red) IndicatorsVariable Bass Boost (0 To +10 Db Bass Boost At 45 Hz)Mono Channel OperationPreamp Rca Outputs To Daisy Chain Multiple Amps4-way System … |