Markets Surge Ahead Of Obama And Federal Reserve
On light volume, the markets jumped higher this morning ahead of the Town Hall Meeting with President Obama. In addition, the market continues to look forward to the Federal Reserve comments tomorrow after their policy meeting at 2:15pm ET. The SPDR S&P 500 ETF (NYSE:SPY) is higher by $1.27 to $113.76 (+1.13%). This move comes after continued weakness in the dollar. The dollar opened flat as the markets opened flat to slightly higher. Then as the dollar collapsed lower, the markets shot higher. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is lower by $0.07 to $23.53 (-0.30%). Always remember, the markets go inverse to the dollar. Therefore, the dollar dropping only helps the markets move higher into this Obama Town Hall Meeting.
The markets are hoping to hear bullish comments from Obama. Namely, talk on job creation and tax cuts. Even if the markets do not get exactly what they want, it is likely no major selling will occur as the Federal Reserve meeting tomorrow will keep things on hold.
Gold is hitting new all time highs again today while oil is moving higher as well. Gold moving up is concerning to the markets as this is generally a fear indicator or major inflation hedge. Either way, be on the look out for one of those factors to show their ugly faces soon.
Chief Market Strategist