Climb Aboard The U.S. Dollar Index Roller Coaster Ride
What is going on today? Every time the powers that be drop the U.S. Dollar Index the major stock market indexes catch a bid higher. Today the U.S. Dollar Index has been up, down, and all around trading in a very wild and unusual manner. If the U.S. Dollar Index declines further will this help to lift the weak commodity sector?
Earlier, around 11:00 am EST, the U.S. Dollar Index declined and many of the leading commodity ETF's such as the SPDR Gold Shares(NYSE:GLD), and iShares Silver Trust(NYSE:SLV), caught intra-day bids higher. The major stock indexes all rallied higher as well when the U.S. Dollar Index declined. However, despite the roller coaster action in the U.S. Dollar Index and major major stock indexes remain under pressure this afternoon. Often, over the past few months since the Federal Reserve Bank began it's QE-2 program the major stock market indexes rarely end down on the day. Can the market finish deep into negative territory or will it rally into the close as it does nearly everyday?