What A Difference A Day Makes

After the FOMC announcement yesterday, the stock market sold off and the dollar dropped in a big way. That left many thinking that those moves would continue today. Wrong.

This morning, stocks started higher out of the gate, while the dollar got a big boost. The surge in the dollar hit commodities hard. Oil and gold are both plunging. Crude is now near $110.50, and gold gapped below $850.

The ag stocks are also continuing to go lower, as are the energy stocks. It didn't help that despite the big rise in energy prices, Exxon (XOM) missed its earnings estimates, and the stock is down by more than -4% so far.

But for the first time in awhile, although the former leading energy and commodity stocks are all lower, tech and financials are surging higher. This is a welcome sign for many, and another indication that growth stocks should do well in this environment.

AAPL, GOOG, RIMM, etc. are all higher. The semi index is currently up +2.8%, and the bank and broker indexes are both up +3.0%. Very strong.

Asian markets were mixed overnight, and the Yen and Euro are both lower vs. the dollar. The 10-year yield is also lower, trading at 3.71%, indicating an easing of long-term inflation worries.

The Nazz is leading the way, but it is still very early. I have noted that the market is currently overbought, and I am taking some profits this morning to raise cash. Let's see how the day shapes up.

long AAPL, GOOG