Can The U.S. Dollar Index Decline Enough To Save Markets?
The major stock indexes have been on a wild roller coaster ride today. The U.S. Dollar Index has sold off sharply lower since 11:30 am EST. As we all know by now, when the U.S. Dollar Index declines the major stock and commodity indexes inflate and trade higher. The U.S. Dollar Index is trading lower by 0.34 cents and that seems to be good enough to help keep these markets trading off the lows.
Amazon.com Inc.(NASDAQ:AMZN) is surging higher with a strong retail sector today. The stock is trading higher by more than $5.00 to $170.75 a share. This stock could be setting up for a late day breakout if the major stock indexes can hold up. Traders should keep this stock on the radar for a breakout later this afternoon.
With uncertainty about the future of the economy and in particular the indexes sweeping, traders are again sending mixed messages and the markets are flattening out. If you see this as market stabilization then you must also see this as a buying opportunity since after a period of uncertainty and stabilization, there is inevitably a period of growth. For the rest, see http://fiscalfrenzy.com
Of course I cannot know for sure if this is the bottom in commodities, and or the top in stocks, but I'm comfortable taking a stand here. As I often discuss, almost all asset classes are linked. For the past couple years, the JPY (yen) and the $CRB have been reliable indicators...