The Dow Jones today continued its gains after the Federal Reserve said it'd do all in its power to prevent a liquidity crisis. However, the price of oil shot to an all time high above $110, this then triggered a sell off and brough the DJIA into negative territory.
What angers me about this is that the stock market went up and then down for THE SAME REASON. In other words, the cause for the increase in the stock market was the same cause for its decrease.
The Fed swore it would come to Wall Street's rescue even if that meant pumping the economy with hundreds of billions of dollars in liquidity.
But in pumping hundred of billions of dollars into the economy, it further weakened the dollar. And if you've been paying attention, the reason oil has been going up in price is not that oil is becoming more valuable, but the dollar is becoming less and less valuable. And so by vowing to save Wall Street, the Fed hurts the dollar and drives up the price of oil which drove stock prices down.
So Wall Street, Ivy Leaguing, Bulge Bracketing gurus, which one is it?