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inthemoneystock (< 20)

Dollar Surge Means Another Down Friday

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June 10, 2011 – Comments (2)

In the past, the major stock indexes would rarely decline on a Friday, with this type of action occurring so often we coined the phrase, Friday effect. However, over the past month the major stock indexes have been plummeting on Friday's and we may have to make up a new phrase called the Friday defect. This morning, the catalyst for the stock market decline is the rising U.S. Dollar Index. Obviously, there are many other problems in the economy causing a weak stock market such as the European debt crisis, high Asian inflation, and 9.1 percent unemployment in the United States just to name a few. The stock market is no longer able to climb the wall of worry at this time.

Oil, gold, and silver, are all coming under heavy selling pressure as the U.S. Dollar Index rallies higher by 0.43 cents to $74.63 per contract. It would be prudent for short term day traders to look for the stock markets to bounce off the lows intra-day if the U.S. Dollar Index pulls back. However, if the U.S. Dollar Index continues to surge higher on the session then it is very likely the major stock indexes will see further selling pressure throughout the trading session.


Nicholas Santiago
InTheMoneyStocks.com

2 Comments – Post Your Own

#1) On June 10, 2011 at 11:30 AM, L0RDZ (81.96) wrote:

Its just a kansas city shuffle...

Wow who'd thunk the computers decide that a strong dollar is bad for  you...

The deciders have already decided to do what they want, when the market reverses those who are slow will get hurt.

All those are not valid reasons  for something to go up or down. 

Please someone re-animate the dead cat....  come on don't they have nine lives ???

Get up...  LOL...

 

 

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#2) On June 10, 2011 at 11:51 AM, IIcx (< 20) wrote:

"The stock market is no longer able to climb the wall of worry at this time."

 

What wall of worry? Oh, you mean if your in silver, gold, or foreign markets?

- QE2 is ending

- QE3 is off the table

- Fed isn't going to ease further 

- we're likely to see a rate increase in Q3 due to inflation

 

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