Commodity stocks are lifting the stock indexes higher today. Leading commodity names such as Freeport McMoRan Copper & Gold Inc (NYSE:FCX), Southern Copper Corp. (NYSE:SCCO), and AK Steel Holdings Corp. (NYSE:AKS), are all trading higher on the trading session. This move in these commodity stocks come as the U.S. Dollar Index trades sharply lower. As many of our readers know when the dollar declines the commodity stocks will inflate higher.
Even with the strong move higher in the commodity stocks the major stock market indexes are not surging higher. This is telling us that the market remains weak and any bounce in the U.S. Dollar Index will likely cause the major stock indexes to decline. Since March 2009 the movement in the U.S. Dollar Index has been the driving force behind every major rally and every major decline. The dollar has traded higher for most of 2010 and you can see how the major stock market indexes have struggled.
Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com
