Last night, the S&P 500 Index e-mini futures (ES-M2) traded as low as 1344.75 per contract. This afternoon, the major stock market indexes are trading basically flat. Believe it or not, the S&P 500 Index e-mini futures are trading higher by 5.50 points to 1368.00 per contract. So what saved the markets today? Simply put; it is the same thing that has saved the markets for the past ten years, the falling U.S. Dollar Index. In the overnight trading session the U.S. Dollar Index…

Microsoft Corp (NASDAQ:MSFT) is one of the few tech stocks that are pulling back this morning. The stock is scheduled to report earnings tomorrow after the closing bell. It is important to note that MSFT stock has surged higher since November 25, 2011 when the stock was trading as low as $24.30 a share. Today, MSFT stock is trading lower by 0.10 cents to $28.15 a share. As most traders know, taking a position in a stock ahead of earnings is always very risky as the stock can go either…

This morning, all of the major stock indexes are surging higher at the open. The early rally is sparked by global central bank intervention, The central banks around the world will provide liquidity to the large banks that cannot borrow. We must all believe that the Federal Reserve Chairman Ben Bernanke is behind this move. The action by the central banks around the world is causing a massive short squeeze in the markets. Just think about how many investors went short yesterday as the…

This stock market will continue to dip and flip on a regular basis. The days of buy and hold seem to be long gone. Sometimes during the intra-day action the stock markets can have swings of 2 – 3 percent. This is a stock market for chart readers and not for the person that buys on economic data or price to earnings ratios. The stock market does not care what method anyone uses, it will take your last dollar if you do not know what you are doing.



Just think about…

Once again, the major stock indexes reversed an early decline. The rally in the S&P 500 Index came as the U.S. Dollar Index futures (DX Z1) plummeted around the noon hour. The inverse relationship between the U.S. Dollar Index and the major stock indexes continues to occur every single trading day. As long as the U.S. Dollar remains weak the major stock indexes will inflate and trade higher. In essence, every trade is a trade on the U.S. Dollar Index at this time.…