The Markets are Once Again Flying Higher

Last Fridays massive sell off is ancient history. New 52 week highs are being hit once again and all is right in the world. The sarcasm again bleeds through here but the basic facts are there, a massive move higher engulfed the markets. The Federal Reserve is back in full force, crushing the Dollar which in turn lifts the markets. The Federal Reserve and head master puppeteer lost control for just one day, a split second in a time that is this market. Last Friday, the collapse was major, as fear ripped through the markets over Egypt, the whole Middle East and the Suez Canal. As investors rushed for cover, volume surged as the Dollar ripped higher. The Federal Reserve was unable to control this move thus the markets collapsed sharply. Thank goodness for them there was a weekend over which to calm nerves. By Monday, all was back to normal, light volume returned and the Dollar went lower.  The SPDR S&P 500 ETF (NYSE:SPY) is trading at new 52 week highs at $130.38, +1.71 (+1.32%) while the Dollar is getting crushed.  The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $22.17, -0.19 (-0.85%).

The markets are being shot higher by key stocks like Exxon Mobil Corporation (NYSE:XOM).  XOM is trading at $83.12, +2.44 (+3.02%).  This is a monster move in XOM and a new 52 week high. Just yesterday, XOM reported stellar earnings. All sectors are moving higher on this broad based rally. JPMorgan Chase & Co. (NYSE:JPM) dramatically helping the markets today, trading at $45.80, +0.86 (+1.91%).

The bottom line is this, as long as control is maintained by the Federal Reserve through a weaker Dollar and light volume, the markets will have only minor pullbacks. If something erupts globally, that threatens stability, the markets will drop sharply. The key will be is the global disruption viewed as a short term minor issue like Egypt for now, or a bigger issue. This will be the one factor that will cause a major drop in the markets or just a minor one day event.

About Gareth Soloway 168 Articles


Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

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