Watch the dollar!

While the markets are driving people up the wall and with the Jell-O moving all over the plate there a couple of things that are starting to stick out like a sore thumb. What makes it more interesting is not many people are talking about it.

We think you are about to start hearing that the dollar is breaking down.against all other currencies. This could be very important. There is no doubt this is happening because markets believe the Fed is full of it and that the Fed will stay put. A weaker dollar will:

Buffer multinationals that have been hit hard.

Lift commodities. We are already starting to see gold, oil and the like getting much better bids. We expect you will be hearing more about these areas going forward.

Lift commodity-based countries. We are already seeing much better action in China, Russia. If this happens, the U.S will go for the ride. Yes…easy money is here to stay.

There continues to be very little in the way of leadership and as of the close Wednesday, we started to see some areas that have been holding up starting to break down. Financials are also acting horrid.

So far, earnings are putrid but estimates have already been taken down…so the game of beat the number continues to be played.

We also wanted to alert you to the semiconductors which had a monstrous day on Wednesday off of Intel’s poor numbers as well as more rumored mergers. Yes…poor numbers! This group remains hugely important to the market.

Lastly, Walmart is being crushed even more. Yes, there’s competition but leave no doubt, the higher wage issue is coming into play. Wal Mart just announced a measly $2.5 billion in costs for the higher wages as well as job training. We expect more. The mandating of costs to companies without an equal proportion of productivity is never a good thing. Think pink slips and robots!