Forget Greece, It Was Baked Into The Cake
Once the Greek parliament voted in favor of the austerity vote the U.S. Dollar Index has rallied higher off the morning lows. Should the U.S. Dollar Index trade higher throughout the trading session we could expect the major stock indexes to fade or deflate throughout the day. The European Union has many hurdles in front of it besides Greece. Countries such as Ireland, Portugal, Spain, Italy, and Belgium are just a few countries that could face the same crisis as Greece in the near future.
The major stock market indexes have soared higher over the past two trading sessions. The S&P 500 Index has climbed higher by more than 25.00 points in just two trading sessions. Often, when markets rally sharply higher in such a short span of time they will need to pause or consolidate before moving higher. This market is not out of the woods just yet despite it staging a sharp two day rally. Traders should simply keep an eye on the U.S. Dollar Index throughout the day.
Some leading stocks that could deflate quickly on the back of a stronger U.S. Dollar Index include Exxon Mobil Corp.(NYSE:XOM), Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), and Cliffs Natural Resources Inc.(NYSE:CLF).