Friday Market Wrap

The market sold off today because treasuries got killed (yield up). Also the U.S Dollar looks higher. I think that once the initial shock that rates are going higher gets absorbed the market will be fine.

There are a number of implications embedded in the strength of the greenback.

It will help tamp down dollar-denominated commodity prices
It will help keep inflation pressures in check
It will helps make overseas travel more affordable for US citizens
It will raise the appeal of owning US assets for foreigners in countries with a weakening currency
It will enhance the competitive influence of foreign exporters; and
It will weigh on the earnings prospects of US multinational companies (conversely, it will boost earnings prospects for foreign multinational companies)

We have known for a while now that the Fed is close to wrapping things up. This is a good thing in my opinion, and maybe now the market will go higher based on old fashioned reasons. Earnings and growth. Not financial engineering.

I still think we are going higher into year end. Have a great weekend. I will be out with setups and strategy for Premium members over the weekend.

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King Dollar and Stocks