This stock market is a market on steroids and amphetamines. The only way that this market trades higher is when the central banks pump huge amounts of stimulus into it by devaluing the U.S. Dollar Index. Today is a perfect example of that shot of adrenaline being administered as the U.S. Dollar Index trades sharply lower this morning. Obviously this was done to create a euphoric mode in the market place as the Government Motors IPO was released. While this is simple and plain insanity it is going on. When will these markets be driven by true supply and demand again? Perhaps never.
When the U.S. Dollar Index declines commodities and most of the major stock indexes will simply inflate and trade higher. Today gold is surging higher by 14.00 points to $1351.00 an ounce. The iShares Comex Gold Trust ETF(NYSE:IAU) is trading higher by 0.12 cents to $13.19. The iShares Silver Trust ETF(NYSE:SLV) is trading higher by 0.82 cents to $25.82. These large advances come as everything is inflating higher today. The United States Oil Fund(NYSE:USO) is also bouncing today trading higher by 0.61 cents to $35.33.
This looks to be a day when everything may stay inflated in order to keep the General Motors IPO looking strong. However, this inflation party may not last all that long. Should the U.S. Dollar start to rally again over the next few days the major stock indexes could deflate again.