US stocks surge on 'watershed' dollar jump

US stocks surge on 'watershed' dollar jump

www.ft.com

The dollar reached its highest in five months against a trade-weighted basket of currencies, while oil fell more than $5 to $114.87, 22 per cent below its record high of $147.27 last month. The S&P 500 closed 2.4 per cent higher in New York.

The shift in sentiment was triggered by Jean-Claude Trichet, president of the European Central Bank, who warned on Thursday that third-quarter eurozone growth would be “particularly weak”. This sparked talk that the ECB would be forced to abandon its hawkish policy stance and start cutting interest rates, thereby weakening the euro.

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This is great news. I really hope this trend continues so the economy can start patching up its wounds. It's funny how just pure "speculation" about certain subjects (oil, interest rates, etc..) can cause such shifts in the markets.

It would be nice if gas would get down to around $3.50. I have no problem with it being that (well I do, but I don't want to nit pick).

More importantly, the rebound of the economy is my chief concern and this news is a step in the right direction.

Thoughts?

www.ft.com
(visit the link for the full news article)

Originally posted by DrOOpieS


This is great news. I really hope this trend continues so the economy can start patching up its wounds. It's funny how just pure "speculation" about certain subjects (oil, interest rates, etc..) can cause such shifts in the markets.

It would be nice if gas would get down to around $3.50. I have no problem with it being that (well I do, but I don't want to nit pick).

More importantly, the rebound of the economy is my chief concern and this news is a step in the right direction.

Thoughts?

www.ft.com
(visit the link for the full news article)

I forsee a suckers rally in the dollar but i don't know how to take advantage. You brought up gas prices and you have to remember gas prices have TRIPLED since GW has been in office. Talk about hitting a person in their pocketbook. I remember paying $1.28 at the pump in early 2002.

lol, you're right about the suckers following suit.

Thats what causes the momentum effect in market charts, why a movement wont just spike and quickly bounce right back down, it flows like a wave due to other investors thinking "Oh look, the stock is climbing, I'll invest too." Problem for them is they buy in a little too late and get very minimal returns on their investment.

... so basically, don't bother looking into how, it's not worth your while any more.

I'm glad to see this reversal. Now we just need to get those yahoos out of the US government so they don't cause the downfall to start all over again.

reply to post by stikkinikki


I know what you mean. I got my license in the summer of 2001 and thought: "wow, this is great, gas is cheap and my friends and I can cruise around all the time!". Then as each year went by, prices kept slowly going up. Then, in 2005 after Katrina, all hell broke loose and I felt like I was screwed out of my "teenage cruising" right of passage in life .

Originally posted by DrOOpieS


This is great news. I really hope this trend continues so the economy can start patching up its wounds. It's funny how just pure "speculation" about certain subjects (oil, interest rates, etc..) can cause such shifts in the markets.

It would be nice if gas would get down to around $3.50. I have no problem with it being that (well I do, but I don't want to nit pick).

More importantly, the rebound of the economy is my chief concern and this news is a step in the right direction.

Thoughts?

www.ft.com
(visit the link for the full news article)

Well as far as gas is concerned I figure that was the plan all along.

Crank the prices way up and then settle them down and still be 70%
I believe the PTB understand the I don't want to be picky mindset.

Second I believe the worst has yet to come. Our economy is in the toilet, the only thing holding it up is belief... We are bankrupt.

Vote MCCAIN

Oil To $50/bbl In Scheme To Destroy US and Arabs Says Illuminati Insider

theinternationalforecaster.com...

Is this becoming true?

Originally posted by stikkinikki

Originally posted by DrOOpieS


This is great news. I really hope this trend continues so the economy can start patching up its wounds. It's funny how just pure "speculation" about certain subjects (oil, interest rates, etc..) can cause such shifts in the markets.

It would be nice if gas would get down to around $3.50. I have no problem with it being that (well I do, but I don't want to nit pick).

More importantly, the rebound of the economy is my chief concern and this news is a step in the right direction.

Thoughts?

www.ft.com
(visit the link for the full news article)

. I remember paying $1.28 at the pump in early 2002.

Triple AMEN to that one .... WORD is born

Originally posted by DrOOpieS


This is great news. I really hope this trend continues so the economy can start patching up its wounds. It's funny how just pure "speculation" about certain subjects (oil, interest rates, etc..) can cause such shifts in the markets.

It would be nice if gas would get down to around $3.50. I have no problem with it being that (well I do, but I don't want to nit pick).

More importantly, the rebound of the economy is my chief concern and this news is a step in the right direction.

Thoughts?

www.ft.com
(visit the link for the full news article)

It's already below 3.50 here...and as far as the dollar is concerned, in the long run unless we get our debt under control the dollar will decline, but if we balance our budget, the dollar will sky rocket. Unlikely...but for now the dollar is pretty undervalued. The real suckers were the people who kept shorting the dollar, anyhow I think the ECB is in deeper than they are letting on...

reply to post by mental modulator


HaHa there is something about John McCain that just makes me go, huh? He's so out of touch with just about everything in society I almost feel bad for the guy.

Then I remember how in bed he is with special interest groups that fund his campaign and give him talking points for most of his "rallies". He is a joke of the "Maverick" he was in 2000.

I'm not declaring my undying allegiance to Obama, he's got plenty of questionable qualities as well, but at least with him we know he can use a computer.

reply to post by yellowcard


What!?! Where the heck do you live? It's $4.33 up here in Seattle for Premium (which I have to put in my car), and we get most of our oil from Alaska!

Originally posted by DrOOpieS
reply to post by yellowcard

 

What!?! Where the heck do you live? It's $4.33 up here in Seattle for Premium (which I have to put in my car), and we get most of our oil from Alaska!

Never Never Land

I had a major brain implosion, it is around 4.39 here, I was thinking you said 4.50 and then I saw your 3 and well....you get the drift.

reply to post by yellowcard


Geeze, Never Never Land doesn't seem as great as I thought it was . Far too expensive to cruise around. Now I feel like we have it good with $4.33 a gallon....actually no I don't, it sucks.

CB Intervention

Some trippy press-explainations for the dollar rally today.

It's the correction in the commodities complex!...nope...It was Trichet' negative utterance on EuroZone growth prospects (about eight words)...well, maybe it's...the rest of the world finally acknowledging that they're in worse shape than we are!

If any of those events were capable of draining dollars from the system...I might agree...but they aren't. In fact, M-1 & M-2 are currently growing (FRB H.6 August 7, 08). Sorry, fundamentally, nothing has improved for Uncle Buck.

On-the-other-hand...a few months back there was some very public speculation about coordinated, official sector currency intervention. So either the MSM pundits weren't listening close enough...have short memories...or they simply don't keep-up with current data.

Fortunately, I follow a couple of analysts that do.

Since the dollar put in it's most recent low...USDX-71.87 on July 16...foreign-owned US treasury & agency debt held in the NY Federal Reserve custodial account...expanded by $52BB...to a hair under $2,401BB. That amounts to a 38.4% annual rate of growth in only 3 weeks. For comparison, during the entire 12 month period prior to July 16...the ARG was only 17.3% You'll find the latest report here: FRB H.4.1 August 7, 08.

Dramatic EUR/USD reversal...or...How to "tame the Euro's rise" and trigger a stampede of lopsided dollar shorts....

Some of you folks might remember these:

Time For The ECB To Start Buying Dollars

Dollar Puts Morgan, Goldman on `Intervention Watch'