By Gareth Soloway on March 2nd, 2010 2:27pm Eastern Time
The markets are floating higher today and are on pace for one of the lightest trading day of 2010. The SPDR S&P 500 ETF (NYSE:SPY) is trading up $0.65 or 0.75%. The key to the slight up move again has been the falling dollar. The dollar started out neutral to slightly higher but quickly was pushed down by the "powers" that be. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is down now $0.06 or 0.25%. While the dollar is slowly dropping, we are seeing a slight disconnect emerging in the perfect opposite relationship between the dollar and the markets. This is something we need to watch very closely.
Key stocks making moves today are Palm, Inc. (NASDAQ:PALM). After an amazing amount of bad news and peoples bearish view on Palm, I began to drool and salivate. Anytime the masses (amateur traders/investors) get so bearish on a play when it has dropped over 50% in a month, I know a bounce is coming. Sure enough, from my alerted entry of $5.83 to my Research Center subscribers and Intra Day Stock Chat members, we are up almost 10% on the trade. It may continue towards $7.00 or beyond depending on the markets momentum.
Technology has remained strong today after yesterdays amazing move. The leaders here are again Amazon.com, Inc. (NASDAQ:AMZN) and after a slow day yesterday, Google Inc. (NASDAQ:GOOG) had decided to be a leader.
Many Chinese small cap companies are emerging as runners today. China Security & Surveillance Tech. Inc. (NYSE:CSR), Origin Agritech Ltd. (NASDAQ:SEED) are just a few. It looks like stocks that have a lot of shorts are seeing some covering. This action usually spells a soon to be end to a market run. Remember, always go the opposite way of the masses, the pros do!
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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