The Only Chart That Holds Water
Traders can easily see how quickly this rally ended as soon as the U.S. Dollar Index(DXY) took off to the upside. The news out of Europe is being released fast and furious, however, traders should simply keep their eye on the U.S. Dollar Index chart. The leading financial stocks are still positive on the trading session, while J.P. Morgan Chase & Co (NYSE:JPM) has declined sharply from the morning highs. If the financial stocks fail to hold up these markets could see a much sharper sell off today. Traders must remember, the only thing that can hold this market up is a weak U.S. Dollar Index.
MF Global Holdings Ltd (NYSE:MF) is plummeting lower again. The CEO of this company is none other than John Corzine the former governor of New Jersey and former boss at Goldman Sachs Group Inc (NYSE:GS). MF stock is not looking very healthy today and this stock is likely to weigh on the markets.