Market Mover: We're Back to the Buck

Headline Alert

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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