Stock Market Update: Blood In The Street

After a one day stock market rally, all hell has broken loose again. This can be blamed on multiple factors but mainly the Euro collapse because of Greece and the Dollar surging in response. As the U.S. Dollar surges, the markets sell sharply. This inverse relationship has been intact for years now. The Dollar bottomed in early May 2011, just as the markets topped. Coincidence? I think not. The selling is broad based today and the markets have given up all their gains from yesterday. A few notable leaders to the downside are Chevron Corporation CVX, Apple Inc. AAPL and JPMorgan Chase & Co. JPM. All these leading stocks are getting crushed today. There are a few strong stocks out there but hard to find. Amazon.com, Inc. AMZN remains slightly positive on the day while Research In Motion Limited RIMM, one of the weakest stocks in 2011 is flat. The VIX is spiking dramatically. This is the fear index. Greece may default any day now. Does this bring in QE3? Very likely in 2012 if not sooner. This morning a plethora of economic news was released. The futures sold sharply as the U.S. economic news continues to be ugly. To get a sense, the Empire Manufacturing for June reported in at -7.8. This negative number was a shock to the markets and something the Federal Reserve is probably looking at closely. Gareth Soloway InTheMoneyStocks.com