Seeking Alpha

David White » Comments » ALD

  • Equities Update: Oil Drops, Stocks Too [View article]
    The down movement in the markets seemed to agree almost exactly with the up movement in the USD. You can watch this by tracking UUP. The USD seems to have bottomed against the yen. With the negative UK GDP news, it bottomed against the pound. Many are theorizing that it is bottoming from about 1.50 against the Euro. Prechter has been calling for a rally in the USD based on extremely low bullishness. Commodities are over bought. The US equities markets are over priced and over bought. The Fed is withdrawing stimulus programs. The Fed is talking about when to start raising rates. All this is contributing to a possible rally in the USD.

    If the USD rallies, commodities will likely go down, as they are USD denominated. This will push commodity based stocks such as energy, materials, and Agriculture downward. This should push the equities markets overall downward. We will have to watch closely as this situation develops. GOLD and Oil certianly fell today.

    If the USD rallies, a lot of people will start to bail out of the USD carry trade. If they don't they will lose a lot of money as the USD rises. They will have to sell other assets in order to repay their USD obligations. Those sales will contribute to the US and other countries equities markets going down.
    Oct 26 17:42 pm |Rating: +5 0 |Link to Comment
More on ALD by David White
Comments by Ticker
A, AA, AAI, AAPL, AAUKY.PK, AAWW, AB, ABB, ABCW, ABD, ABFS, ABIO, ABK, ABT, ABV, ABWTQ.PK, ABX, ACAT, ACE, ACH, ACI, ACM, ACMR, ACN, ACOR, ACS, ACTS, ACWI, ACXM, ADLS, ADM, ADP, ADS, AEM, AEO, AEP, AET, AEZS, AFFM, AFL, AFLYY.PK, AGEN, AGG, AGN, AGU, AHL, AIA, AIB, AIG, AIG.PA,
David White is a
Top 100 Commentor
1290 comments
Rating: 1063 (1549 - 486 )