The keys to the market are discussed here and in the video below. The markets dropped dramatically lower today as China raised interest rates in a surprise move. The SPDR S&P 500 ETF (NYSE:SPY) opened at $117.19 after closing yesterday at $118.54. The markets shot lower after this move by China because it also strengthened the U.S. Dollar. When the Dollar goes higher, the markets go lower. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is currently trading at $22.60, +0.28 (+1.25%).
As the markets flushed into the 10:00am ET time frame, it appears POMO (Permanent Open Market Operations) by the Federal Reserve stepped in to prop the markets up once again. The markets are far off their lows, trading at the highs of the day. The market has shrugged off earnings from Apple Inc. (NASDAQ:AAPL) and International Business Machines Corp. (NYSE:IBM).
Gold is getting hit dramatically today as is oil. The move by China hit commodities hard. The SPDR Gold Trust (ETF) (NYSE:GLD) is trading at $131.27, -3.01 (-2.24%) while the United States Oil Fund LP (ETF) (NYSE:USO) is trading at $35.41, -0.87 (-2.40%).
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
