Market Talk

Stop! No more, please. We give up.

This one isn’t particularly hard to figure out. Risk appetites run rampant, US dollar gets pummeled.

And as long as there’s not even a casual effort to buoy the buck, carry traders are happy to sell it and plow more dough into stocks, gold and oil — and maybe even Treasurys now (yes, they were up too today.)

Where’s the risk in that? Doesn’t look like there is any, for now. Not unless there’s a sudden rush to seek shelter in the “safe-haven” USD. That might come under the header of “geopolitical risk,” but there hasn’t been a whiff of that priced into stocks since oil tumbled off it’s pedestal more than a year ago.  

Financials, materials, industrials, telecom and consumer discretionary lead the rally. IBM, CAT, AmEx and UTX among the Dow’s leading dollar advancers.

You know there’s a certain throwing of caution to the wind when the consumer discretionary sector rises 2.2% one session removed from seeing unemployment hit a 26-year high, and no sign it’s going back down any time soon.

DJIA rises 203.52 (or 2%) to 10226.94, and Nasdaq Comp gains 41.62 to 2154.06. S&P 500 adds 23.77 to 1093.07.

Apologies for the light posting today, should be back with more frequent items tomorrow.

Tight inverse correlation between movements in the US dollar and various other asset classes seems to be back on again after loosening up a bit last week. G-20 meeting signals no let-up in central banks’ efforts to stimulate the global economy.

US dollar index is getting hammered, and in turn oil, gold and US stock futures are all seeing strong bids. Dollar index down almost 1%.

Light week for economic data, and nothing notable before Thursday’s weekly jobless claims. Friday brings Oct import prices, Sept trade deficit and an early Nov look at consumer sentiment. Bond market’s closed Wednesday in observance of Veterans’ Day.

S&P futures up 10; Dow futures up 90; 10-yr isn’t getting pushed around much, down a little, yield at 3.51%.