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Wed, November 10, 2010

Zacks' Voice of the People highlights opportunities with SPDR S&P 500 ETF and PowerShares DB US Dollar Index Bullish


Published on 2010-11-10 07:11:42 - Market Wire
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CHICAGO--([ BUSINESS WIRE ])--Zacks highlights commentary from People and Picks Trader ainthemoneystocksa.

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Dollar Pops Causing Market to Fall

November 10, 2010 - RELATED TICKERS: SPDR S&P 500 ETF (NYSE: [ SPY ]) and PowerShares DB US Dollar Index Bullish (NYSE: [ UUP ]).

The markets dropped in the early afternoon session as the Dollar got a pop. The inverse relationship continues. The SPDR S&P 500 ETF (NYSE: [ SPY ]) trading at $121.84, -0.65 (-0.53%) while the Dollar has jumped higher, the PowerShares DB US Dollar Index Bullish (NYSE: [ UUP ]) is trading at $22.44, +0.14 (+0.61%).

There seems to be more and more disgust showing up over the massive money the Federal Reserve is pumping into the system. A market that was expecting quantitative easing to continue for years to come, may have some problems politically. That is helping the Dollar catch a strong bid.

While Ben Bernanke seems to have a one track mind on the matter, some Federal Reserve officials, economists and government players are questioning the long term problems this flood of money could have on the system. These are all things I have been talking about for months now. While in the short term, this money will prop a market up like a drug addict getting a new high, the long term consequences could be deadly. Another bubble in the making.

We are already seeing gold, silver and many other commodities surge not to mention food prices. In addition, the false inflation of equities is just fooling the public into spending again, running up their debts as they feel wealthier. This is exactly what got us into the same mess to begin with. Be warned, a battle has started, but a majority of the damage has already been done. To get more analysis, swing trades and education, join the Research Center.

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