Two Ways to Play: Geithner Advocates Strong Dollar
Strengthen your portfolio in good times and bad.
US Treasury Secretary Timothy Geithner was in Japan today saying the United States is committed to a strong dollar policy.
According to the Wall Street Journal, Geithner, speaking to a group of Japanese reporters, said it's important for the economic health of the US to implement such a policy that will sustain the confidence of not just American investors but also foreigners as well.
Geithner also added that he doesn't see a contradiction between increasing a strategy of increasing exports and a stronger greenback. The thinking is that the world could be more open to US products as the global economy improves.
From the Bull Pen: Have a look outside of the US, specifically to India, one of the best performing markets around the globe. On the charts, the India Fund (IFN) tagged its 20-day moving average (29.75) and resumed its upward course. Those bullish can set a sell stop below that level.
From the Bear Cave: At least this time the reporters didn't laugh at Geithner. But the government's actions speak louder than words. The Euro ETF (FXE) is attempting to make new highs this morning. The eventual target could be 160. One can set a sell stop 2% below entry.
A Quick Check Around the World
Asian trading closed with the Nikkei 0.01%, India 2.49%, Hang Seng 1.61%, Shanghai -0.11%, and Taiwan 0.98%.
Across the pond, we see the FTSE 1.17%, CAC 1.18%, DAX 1.31%
As of 8:20 a.m. EST, S&P Futures are trading +7.00 to 1099.00 and Nasdaq futures are +13.00 to 1785.75.
A Look at Commodities
Over in commodities, crude oil is +0.38 to 79.43 while gold is +14.50 to 1117.00 this morning. Silver is +0.44 to 17.670 and copper +4.355 to 300.50.
The dollar Index is -0.1550 to 74.9550.
No events on the radar today, but click here for the full list of this week's events.
Happy Hump Day! Good luck and have a great day!
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