10.30.09
Home Market Timing Weekly Updates Weekly Update Archives|
10.30.09 The major averages closed sharply lower this week as the dollar rebounded against the other major currencies. The S&P 500 lost 4%.The dollar was the biggest, if not the only, catalyst this week. In fact, the charts of the major indices are almost exact inverses of the U S Dollar Index (DXY). A weak dollar benefits the economy as it boosts exports, and investors are trading stocks based on the moves in the currency. All the major indices except the Dow are now below their 50 day moving average. It appears that the euphoria in the market has finally subsided and reality is at last setting in. We have been waiting a long time for reality to get here. Maybe the market will again become predictable. At least we hope it has arrived. This week’s commentary is going to be a short one because I’m down with the flu. We are remaining 100% in CASH. Till next time The MTA Staff |
