By InTheMoneyStocks.com on March 3rd, 2010 2:23pm Eastern Time
The markets have continued to fade off the highs of the day though still positive. The dollar has been hit hard today as the Greece situation continues to look better. The safety of the dollar looks less attractive when global risk subsides. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is lower by 0.75%. On an interesting note, I continue to see a little decoupling from the dollar in certain ways. It seems now when the dollar falls, the market does inch higher, however, when the dollar stalls and goes flat, the markets fall. In addition, when the dollar pushes up, the markets fall as well. This is a change from how the markets have acted over the last few months.
The Beige book was released here at 2:00pm ET. Overall it was nothing that the markets did not expect. The Federal Reserve gave the report as expected and the markets barely reacted. The key on the SPDR S&P 500 ETF (NYSE:SPY), as you will see in the video, is whether or not it holds the 50 moving average. Should it break, the markets could dump out nicely to the lows of the day or below. Volume is staying super light at this point, on pace for the lightest trading day of the year.
Key stock movers are Google Inc. (NASDAQ:GOOG). They continue to decide whether or not to continue operations in China. I highly doubt they will simply walk away from that type of population. On a business level, it does not make sense. The stock seems to agree with it trading higher today by 1.00%. Yesterday, Google also had a solid up day.
Commodity stocks continue to have a solid day on the back of the weak dollar. Oil has jumped above $80 today as well. This is helping keep the markets up. Also, join the Research Center at InTheMoneyStocks.com to get live calls, entries, guidance, education, picks and analysis. Learn how to master the markets. I look forward to seeing you there!
Watch that intra day 50 moving average! It is key!
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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