Weak Dollar And Weak Oil Buoy Stocks
The major stock market indexes have traded sharply off of their intra-day lows. This morning the Dow Jones Industrial Average was lower by nearly 300 points. However, once the trading volume subsided and oil and the U.S. Dollar Index declined the major indexes inflated right back up to cut their losses on the session.
Traders and investors should watch for support on the United States Oil Fund(NYSE:USO) around the $38.50 level intra-day. The U.S. Dollar Index was sharply higher by more than 0.50 cents this morning and has since sold off to the negative side by 0.5 cents to $76.30. When oil and the U.S. Dollar Index decline together it is a recipe for a market rally.
Leading commodity stock Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) has surged higher from its gap lower open. FCX stock is now trading higher by $2.32 to $51.26 a share. Potash Corp Sask Inc.(NYSE:POT) was alerted as a long scalp opportunity around the $53.40 level and has staged a sharp rally into the $54.50 area.