Stock Market Video: XOM Rise Is Spectacular As Markets Float
Nearly every trading day the market finds a low early in the session and rallies higher throughout the day. Today is no exception to the usual market action except that it is a Friday. Rarely, will the major stock market indexes decline sharply on a Friday. This is when U.S. consumers will begin their weekend and spend money.
The markets opened lower as worries over Egypt were rampant. Just yesterday afternoon, President Mubarak told his people he would not resign. The markets opened lower and then engaged their normal float higher on the back of standard propping. This propping continues to be lead by the Federal Reserve via QE-2.
Does The U.S. Dollar Index Effect The Market Anymore?
Recently, the U.S. Dollar Index has staged a small two week rally. The U.S. Dollar Index made a short term low around the $77.00 area on February 2, 2011. This morning the U.S. Dollar Index is trading higher by 0.33 cents to $$78.59. Usually, when the U.S. Dollar Index rallies higher the major stock market indexes and most commodities will deflate and trade lower. However, the rising U.S.
Stock Market Video: Gap Down Negated By POMO As Trades Continue To Pay Profits
The markets reversed early losses and surged back to the flat line. Thank the Federal Reserve and their buy programs once again. QE-2 continues to be used on a daily basis in what is called POMO. This stands for permanent open market operations. The Federal Reserve buys treasuries from the banks and the banks take that money and infuse it into the markets.
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Agriculture stocks are having a solid day. While the market is slightly lower, stocks like The Mosaic Company (NYSE:MOS) and Intrepid Potash, Inc. (NYSE:IPI) are higher. While these two stocks are higher, both ran into major double top resistance points and have stalled out. Less than a month ago, MOS hit a 52 week high of $85.99.
The markets are having a rare late morning, pre lunch drop, as the Dollar has spiked higher. The trading day started much like all the rest. A small gap lower and a float back to the flat line on light volume. However, once the flat line was achieved, the markets started to drop at 11am ET. Currently, the SPDR S&P 500 ETF (NYSE:SPY) is trading at $131.93, -0.64.