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Rinse And Repeat For A Sparkling Market

The market is slightly higher again today after the U.S. Dollar again sank sharply mid morning.  This has been the real factor in keeping the markets higher. The Federal Reserve cannot lower interest rates any more but has control over the Dollar to prop up the markets. The markets were lower on the day until the last thirty minutes when the Dollar rolled sharply.  The SPDR S&P 500 ETF (NYSE:SPY) is now trading at $116.24, +0.20.  This is all coming on the back of a monster move to the upside yesterday on another massive drop in the Dollar.

Overall, technology stocks are weak today., Inc. (NASDAQ:AMZN) was a leader yesterday but is now lower at $158.07, -2.80 (-1.74%).  The strongest stocks continue to be anything Dollar related. Chevron Corporation (NYSE:CVX) is jumping higher again today, trading at $83.97, +0.58 (+0.70%).  With oil moving higher as the Dollar weakens, this stock is leading the market.

The Federal Reserve continues to have a weaker Dollar policy. Regardless of the long term consequences, it is the only means by which they can now impact the markets.  They appear to be in a 'do not let the markets fall' phase.  This is seen each day as the markets start to break lower, the Dollar gets hit and the markets rally right back up. Learn the tricks, profit from it. 

Gareth Soloway
Chief Market Strategist