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Futures Pounded As Dollar Rips Higher Again

The futures are dropping sharply as the dollar is ripping higher this morning. The overall U.S. indexes are set to open sharply lower after the Federal Reserve saved the day yesterday by announcing they would start buying U.S debt.  Yes, the thought of flooding the market with more liquidity caused an intra day massive drop in the dollar which helped the markets survive yet again.  However, today seems to be reckoning day number two!  Pre-market, the SPDR S&P 500 ETF (NYSE:SPY) is at $110.75.  That is after a close at $112.38 yesterday.  The dollar is also up sharply with the PowerShares DB US Dollar Index Bullish (NYSE:UUP) trading at $23.75, after closing at $23.52 yesterday. Always remember, there is an inverse relationship between the dollar and the markets. Dollar up big, markets down big.

Over the past week, including last Friday and yesterday, the markets tried to sell sharply.  Each time they did, mysteriously the markets were saved, ripping up late in the day to close just fractionally lower. The Federal Reserve?  The Plunge Protection Team (NYSE:PPT)?  Either way, it appears the market has made up its mind and wants to drop.  They may not have any cards left to play now.  Many stocks remain overbought at this point and the bounces can be shorted in my opinion. Stocks like Chevron Corporation (NYSE:CVX) and Amazon.com, Inc. (NASDAQ:AMZN) both continue to look bloated.  The turn date given out to our subscribers looks to have been nailed once again.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com