Worries Over Inflation Send U.S. Market Down

Stocks struggled to a mixed finish on Monday, just days after the Dow rose above 11,000 for the first time since early May. That got a lot of media attention but while it is really just another number, and one that has been crossed before, it gets attention. Many traders make reference to even whole numbers like that as 'century' numbers. Often breakouts are more potent when they occur over whole even numbers like 10.00 or 25.00 on a stock as well.



Rising oil prices put weigh on consumer discretionary stocks which led the decliners of your day. The dollar fell 5.4% to 83.61 Japanese yen. The dollar index also hit its lowest level in eight months. According to T & K Futures president Michael K. Smith, the dollar is lower and has been much money out there chasing the safe-havens of silver and gold.

Well go forward 10 years and it seems the boys from LTCM have not learned their lesson regarding leverage. The same boys now run JWM Partners LLC. Their biggest hedge fund is down 26% in 2008. JWM lost higher one-fourth of the company's investor's money, more than $300 million dollars. What is ironic is that this group includes some for this smartest as investment world. Both Robert Merton and Myron Scholes, won the Nobel Prize for economic sciences while at LTCM. Computer algorithms were used while risk management and money management negated.

The biggest real estate failure in U.S. history has stirred market talk that Westfield and Simon Property Group Inc. could emerge can easily buyers for that assets from bankruptcy.

"There are no indications that the U.S. economy is going to recession. I'm fairly bullish as marketplace is fairly valued," Peter Dunay, an investment strategist at Leeb Capital Management in New York, told Bloomberg.

Then magic in disguise happened. The Bretton Woods Agreement flattened. The Bretton Woods Agreement had kept synthetic peg towards the U.S. dollar all during the globe. Some pegs were strong, some pegs were weak, but at the finish of the day they never moved beyond 1% in any direction. Like today's problem with the Chinese Yuan, the forced peg against the dollar kept a constant controlled flow of Oughout.S. dollars out of this country.

Red Bank, N.J.-based home builder Hovnanian Enterprises(HOV_) reported a much wider loss for its fiscal second quarter vs. last year as gross margins deteriorated and contract backlog gone down.

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