The Dollar Remains the Key Factor

Last week’s upturn of the dollar is the key factor in the playing out of the reflation scenario.  Gold and oil will be the losers as this plays out.  At the moment stocks are hostages to the overall situation, the banks are paying back some TARP funds, but bank loans and government stimulus activity is below levels needed to keep the stock market rally in place. 

I probably should add that yesterdays late rally and todays opening market action have used up a lot of market energy. In order for a postive move to occur here,  the market needed to backoff and  build energy.

No change in positions this morning.

The EMA ETF Fund Nav was at 1133.

9:02 AM CDT

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