Stronger Dollar, No Longer A Need For Gasoline
Today, the U.S. Dollar Index is surging higher by $1.09 to $74.12 per contract. This is the largest one day gain for the U.S. Dollar Index since January 5, 2011. As we have all learned by now when the U.S. Dollar Index declines the rest of the equity markets will decline lower. Today, gold, oil, silver, copper, steel, and most every other commodity that is trading in U.S. Dollars is plummeting lower as the dollar surges higher.
Last week, President Obama organized a gasoline task force in order to find the evil speculators that were driving up the price of gas. Well, I guess they found those evil speculators as gasoline is plummeting lower this afternoon, and its not Osama bin Laden. The United States Gasoline Fund(NYSE:UGA) is trading lower by $4.07 to $50.21 a share. This is a decline 7.50 percent in UGA during this trading session. Ah, it seems the evil speculators that were driving gasoline prices higher were the guys over at the Federal Reserve. These are people that are responsible for crushing the U.S. Dollar lower on a daily basis. When the dollar goes down, gasoline, oil, coal, copper, and every other commodity trades higher. So much for Ben Bernanke's, Abbot and Costello routine were he says that high gasoline is driven by demand.