By Nicholas Santiago on October 6th, 2010 3:12pm Eastern Time
President Andrew Jackson may have had a very good reason for his views against a central bank. Here is what he believed:
* It concentrated the nation's financial strength in a single institution.
* It exposed the government to control by foreign interests.
* It served mainly to make the rich richer.
* It exercised too much control over members of Congress.
* It favored northeastern states over southern and western states.
President Jackson is the only president in United States history to have paid off the national debt.
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By Nicholas Santiago on October 6th, 2010 9:42am Eastern Time
There is only one chart that matters right now and it is the U.S. Dollar Index. As dollar falls the stock market indexes inflate higher. This morning the U.S. Dollar Index is trading lower by another 0.14 cents to $77.60. Since June 7th, 2010 the U.S. Dollar has declined by over 11.0 percent.
Everything in the commodity group has soared especially gold and silver. Gold and silver are now being viewed as the world's reserve currency as central banks around the world are stumbling over themselves to devalue their currencies. However, it is the U.S. Dollar Index that moves the markets higher when it declines.
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By Gareth Soloway on October 6th, 2010 11:52am Eastern Time
The market is slightly higher again today after the U.S. Dollar again sank sharply mid morning. This has been the real factor in keeping the markets higher. The Federal Reserve cannot lower interest rates any more but has control over the Dollar to prop up the markets. The markets were lower on the day until the last thirty minutes when the Dollar rolled sharply. The SPDR S&P 500 ETF (NYSE:SPY) is now trading at $116.24, +0.20. This is all coming on the back of a monster move to the upside yesterday on another massive drop in the Dollar.
Overall, technology stocks are weak today. Amazon.com, Inc. (NASDAQ:AMZN) was a leader yesterday but is now lower at $158.07, -2.80 (-1.74%). The strongest stocks continue to be anything Dollar related. Chevron Corporation (NYSE:CVX) is jumping higher again today, trading at $83.97, +0.58 (+0.70%). With oil moving higher as the Dollar weakens, this stock is leading the market.
The Federal Reserve continues to have a weaker Dollar policy. Regardless of the long term consequences, it is the only means by which they can now impact the markets. They appear to be in a 'do not let the markets fall' phase. This is seen each day as the markets start to break lower, the Dollar gets hit and the markets rally right back up. Learn the tricks, profit from it. To gain more analysis, guidance, swing trades and education, join the Research Center.
Gareth Soloway
Chief Market Strategist
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