By Nicholas Santiago on July 22nd, 2010 10:00am Eastern Time
The month of July has been a roller coaster of a month. Since options expiration ended on July 16th the up and down action has been outright violent. One hundred point moves on the Dow Jones Industrial Average have become common over the past week. This morning the major stock market indexes are surging higher to start the day on the back of positive European data. It has been a long time since the markets have reacted positive to anything out of Europe.
This morning it is important to note that the U.S. Dollar Index is trading down sharply. In my opinion this is the real catalyst for the move higher today in the stock indexes. Remember when the dollar declines the major stock indexes will inflate. Today the market rally is broad based as most sectors are trading higher.
Technology stocks seem to be the leading group as Qualcomm Inc (NASDAQ:QCOM) is trading higher by 2.64 to $38.80. F5 Networks Inc (NASDAQ:FFIV) is also soaring higher by 8.75 to $81.87 after a positive earnings report. F5 Networks Inc should have daily chart resistance around the $82.50 - $83.00 area. Baidu Inc (NASDAQ:BIDU) is also trading higher by 1.88 to $75.15 after a positive reaction to earnings.
July has been one of the most volatile months in quite a while. This type of choppy action is likely to continue as the battle between the bulls and bears is just heating up. Every time the sky looks clear the storm clouds come rolling in. The opposite case can be made as almost every sell off or decline seems to reverse higher the next day. Today is a perfect example as the markets are trading sharply higher after yesterday's sharp downside reversal. Take this month in stride as July has been a month to remember.
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