The markets opened sharply higher today on the back of a major beat down of the Dollar and some positive earnings. Anytime the Dollar drops, it rallies the market. The bigger the drop in the Dollar, the larger the up move in the market. Today, the PowerShares DB US Dollar Index Bullish (NYSE:UUP) opened lower by 1.00% and the markets, with the help of some solid earnings, opened up well over 1.00% higher.
The Federal Reserve continues to be stuck in their pimp-slap mode on the U.S. Dollar. Anytime the Dollar tries to push up, they smack it down. They are so focused on keeping the equity markets up, they are willing to crush the Dollar almost ever day as they print trillions of Dollars. The scary thing about this action is not the massive debt the United States has built up, but more so the commodity surge as a result. The average American is struggling to buy food and energy and each day the Dollar collapses, those products get pricier. The Federal Reserve has tunnel vision. They believe they must keep the markets up at all costs, flooding the market will trillions of Dollars. They do not notice or refuse to notice and care about the hardships the massive weakening in the Dollar is creating. Gas over $4.00 per gallon? Who cares! A majority of ones salary spent on groceries? No big deal! It is sad but truly the state of things. Perhaps the massive trillions of Dollars printed has created a few extra jobs here and their. However, salary growth has remained neutral as energy and food prices have soared 25% in the last six months.
As the markets rally on light holiday volume and a weak Dollar, a flood of solid earnings hit the markets. Key earnings results from Intel Corporation (NASDAQ:INTC), Yahoo! Inc. (NASDAQ:YHOO) and VMware, Inc. (NYSE:VMW) are keeping technology strong while energy stocks are leading the Dow Jones Industrial Average and S&P 500.
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