Read inthemoneystocks' blog in RSS
May 13, 2011
Share This
It is the dreaded Friday the 13th, can the U.S. Dollar Index decline enough to save the major stock market indexes again? Yesterday, as soon as the U.S. Dollar Index declined from its intra-day high the stock market indexes all posted gains into the close. I'm not complaining, however, this is getting ridiculous already when the only chart of any importance is the chart of the U.S. Dollar Index.
This morning the U.S. Dollar Index looks like a raging animal that is trying to break free from its cage. The debt problems in Europe seem to be increasing by the minute as the problems in Greece, Portugal, Ireland, and others remain. The saving grace for the markets today is that it is a Friday and rarely do we have a sharp decline on a Friday. You see, Friday's are the end of the work week for most people. This is when people will usually spend money as the weekend begins. If people do not start to spend more money then the economy does not function and all of this quantitative easing by the Federal Reserve will have been a wasted experiment.
Consumer spending accounts for roughly 70.0 percent of the gross domestic product(GDP) in the United States. Therefore, it is very important that people start to spend more money. If you have not noticed, there have been very few Friday trading sessions when the Dow Jones Industrial Average closes down more than 100.00 points. Often the markets will trade flat to slightly positive. If someone goes back and looks at a chart there have been less than a dozen sharp sell offs on Friday's in the past two and a half years. Therefore, we expect a flat to slightly positive trading session today.
Nicholas Santiago
InTheMoneyStocks.com
