Dow tumbled 200 after barely going into the black for 2009 on Fri, decliners over advancers a very strong 7-1 & NAZ lost 51. Banks felt the selling pressure, although in line with the decline in the broader averages.
S&P 500 FINANCIALS INDEX
Value
163.39 |
Change
-4.15 |
% Change
-2.5% |
The Alerian MLP Index dropped 3, the Dow Jones REIT Index fell 6 while junk bond funds also suffered a major sell-off. MLPs look to be topping out near 230 after an amazing run this year.
Alerian MLP Index --- 1 month
Alexei Kudrin, Russian Finance Minister, said the dollar is in “good shape.” This statement follows, Dmitry Medvedev, Russian President questioning its global status. China’s central bank has also been suggesting the world may need another benchmark currency. Today's comments sparked a rally in the dollar, causing commodity prices to sink. Commodities had been strong recently (just look at oil) on the "weak" dollar. The strong dollar is behind the stock market sell-off
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Kudrin Shows Dollar Has No Rival as World Currency While BRIC Leaders Meet
Nothing like a strong dollar to take oil down. But prices remain elevated at 70. Iran remains a wild card for oil but revised thinking has been calming worries. The Mideast, especially Saudi Arabia, is supposed to be flush with oil which would allow them help with more supply if there were supply problems from Iran.
| CLN09.NYM |
...Crude Oil Jul 09 |
...69.99 |
... 2.05
.......(2.9%) |
|
At the G-8 meeting in Italy, they are talking about easing up on stimulus plans with signs of recovery. The finance ministers are concerned that too strong a recovery can bring on threats of inflation rates. "Exit strategy" is the new buzz phrase which refers to easing up on stimulus programs.
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G-8 Starts Planning to Reverse Stimulus as Economic Recovery Signs Mount
Dow looks to be topping out after reaching break even for 2009. The chart shows 2 weeks of sideways trading, suddenly it's at the bottom of that range. Have to run to see the dentist to put a crown back in.
Dow Jones Industrials --- 1 month
