Commodities Eating Up Market's Gains
The Dow has given up more than half of yesterday's gain, but much of this is due to the commodities rout. The dollar has been rallying two days, giving some hope to those who believe that the dollar's seven year decline is coming to and end.
This is a pretty slim hope, but if you look at the Dow, forty percent of the decline is due to the decline in the Dow's four commodity stocks: Chevron,ExxonMobil,DuPont, and Alcoa.
There are clear indications the federal government is moving to improve the logjam around mortgage backed securities. In addition to today's announcement that Fannie and Freddieare reducing their capital requirements, which would allow them to purchase and guarantee more mortgages, consider that:
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