Market Mover: We're Back to the BuckJanuary 20, 2010 @ 9:07 AM EST
Market Mover: Back to the Buck
Stocks rallied triple digits yesterday in anticipation of a Republican victory in Massachusetts. But now that the victory has been confirmed, the Dow is down -155 points. What gives?
Several factors appear to be converging to justify this morning’s selling:
- First, the big bank earnings are coming in weaker than expected due to TARP payments.
- Second, China has ordered banks to stop lending for the remainder of the month
- Finally, the dollar rally is triggering the “unwinding” of dollar-carry trades (cover dollar shorts, sell stocks, commodities, and emerging markets).
Disclosure: Mr. Moenning and/or affiliated companies own positions in the following stocks mentioned: none
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