The Dollar soared higher today, as riots spread across the middle east and northern Africa. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) was trading up $22.49, +0.14 (+0.60%). This constant move higher throughout the day has crushed the markets. Global instability fears are driving investors to the Dollar. In response, gold is soaring. Usually, when the Dollar rises, gold would drop. But just like investors are rushing to the Dollar for safety, the same thing for gold. The SPDR Gold Trust (NYSE:GLD) is ripping higher, trading at $131.32, +3.40 (+2.65%). Oil is also soaring, as the middle east instability could mean oil is harder to produce and ship to other countries. The United States Oil Fund LP (NYSE:USO) is trading at $37.45, +1.51 (+4.20%). In addition to all the issues throughout the world, earnings were poor on many key stocks. Ford Motor Company (NYSE:F) is getting crushed, down 15% while Amazon.com, Inc. (NASDAQ:AMZN) is down 10%. All this combined, is making for a drastic drop in the markets. This monster drop may be the start of something bigger. It has the potential to start a correction in this market of 10%. Watch the news this weekend. Gareth Soloway InTheMoneyStocks
The sell off because of the riots in egypt is just an excuse, I could see if the riots were in China, but Egypt....nah, by next week the markets will be back in rally mode.
i heard it was due to some rioting going on in one of the most powerful countries in the world; Greenland.
Another view was that because of all the turmoil in that part of the country, it's considered an oil shock that will spike up prices. Investors were then taking money out of equities and into oil. Different view but something to think about.
The majority of earnings this month were huge on the upside. I guess those with memories that only last 24 hours are doomed to forever donate their money to people who hold their investments in bull markets.
If you dont knew. If Egyptian regime fall, more than 10 other middle eastern countries will follow in the same month. Does this give you any clue.. Have fun.. I suggest SELL
markets ripe for pullback even with no egypt riots etc. the riots are just bad omen. and coincidental do you see riots in new york or riots in the US?