By Gareth Soloway on October 25th, 2010 11:40am Eastern Time
The big G20 meeting was held this weekend. If anyone expected a consensus on currencies they were sadly mistaken. Following the meeting, the Dollar continued its rapid decent lower. The move lower today, move lower, jumped the markets sharply higher. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $119.02, +0.67 (+0.57%).
It is likely the markets will be held neutral to higher into the elections next week. While many want to deny any sort of connection between politics and the manipulation in the markets, it becomes clearer every day. The Federal Reserve wants a weak Dollar as do the Democrats. If the President is going to keep control of both the Senate and the House, he needs all the help he can get. Keeping the markets strong will make people think the economy is improving into the elections. This is the only chance the Democrats have. After the elections, if the Republicans take over, the markets can pull back as the public will push blame on them. In addition, if the Democrats hold power, the next elections are not for some time.
Technology and commodities are leading the market today. Apple Inc. (NASDAQ:AAPL) is inching higher while Amazon.com, Inc. (NASDAQ:AMZN) and Google Inc. (NASDAQ:GOOG) are both higher as well. Chevron Corporation (NYSE:CVX) is also sharply higher, trading at $85.17, +0.62 (+0.73%).
The one and only weak sector today is again financial stocks. Goldman Sachs Group, Inc. (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM) are both lower on the day. To gain more insight, analysis, guidance and education, join the Research Center.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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