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BS Stress Test: Jitters In Europe Spike Dollar, Drop Market



July 18, 2011 – Comments (0) | RELATED TICKERS: SPY , UUP , FXE

The U.S. markets collapsed lower today on the back of more worries out of Europe. The much hyped stress test results for European banks were nothing more than nonsense, spewed by those that are trying to cover up the severity of the situation. The results, released last Friday did not included a possible default of Greece.  Thus, eight banks failing the test means absolutely nothing if Greece were to default. A stress test is supposed to factor in the worse case scenario. This obviously did not. The fact that eight banks still failed is a testament to how bad things are.  After fooling the markets are Friday, the world is recognizing the nonsense nature of the test. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $130.07, -1.62 (-1.23%).

The panic out of Europe is causing the Euro to collapse lower. The CurrencyShares Euro Trust (NYSE:FXE) is trading at $139.90, -1.05 (-0.74%)
while the Dollar is spiking higher. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.57, +0.14 (+0.65%).

While the markets are being hit, Apple Inc. (NASDAQ:AAPL) is bucking the trend, putting together a positive day. This move higher on Apple is on optimism for earnings on the horizon. After Google Inc. (NASDAQ:GOOG) reported a stellar quarter, all eyes are lighting on up on the prospects for Apple.

Gareth Soloway

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