The dollar, PowerShares DB US Dollar Index Bullish (NYSE:UUP) has jumped dramatically higher today as the Euro, CurrencyShares Euro Trust (NYSE:FXE) fell off a cliff.  Fear appears to be emerging over future problems in Europe.  We all know about the problems with Greece but this is just the start I fear.  Where there is one rat, there is a hoard.  Be ready for the next one to emerge soon in my opinion.

While a dramatic rise like this in the dollar usually has a major negative impact on the markets, the stock market has barely moved.  Volume is dead and the powers that be continue to hold it in check on this options expiration week.  It is truly astounding that the common American has no idea what truly goes on behind the scenes.  The manipulation, the printing of money, the intervention and propping of the markets.  Bottom line is, if we did not learn from past history we are doomed to repeat our mistakes.  You cannot manipulate your way out of problems and ultimately it makes them far worse.  Case and point, lowering rates to 1% under Greenspan was one of the key catalysts to creating the free money policy, which lead to the credit  bubble and housing collapse.  Our government officials are far too short sighted unfortunately, looking to get re-elected in the short term, instead of the long term prosperity of the economy.

Stocks In Motion – Earnings

NIKE, Inc. (NYSE:NKE) is surging today as fiscal third-quarter profit more than doubled on higher sales in the U.S. and China.  The stock, which was already at 52 week highs has jumped over 6% on the day.  The stock is extremely extended at this level, however,

FedEx Corporation (NYSE:FDX) also reported earnings.  Their results for the fiscal third-quarter earnings more than doubled, topping the company’s own estimates. Initially the stock was crushed pre market and on the open.  Then a major reversal took place.  The stock has recovered its early losses and is now trading flat.

Gareth Soloway
Chief Market Strategist

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