Has The Stock Market Finally Woken Up To The European Crackup And The Surging Dollar?

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Stocks weren’t down by that much today — the Dow was just down 50 — so there’s no reason to get too freaked out yet.

But we wonder if just possibly the market is waking up to the new world that’s emerged in the last couple of weeks.

Gold is at a 4-week low. Oil is below $70. The dollar is surging. Unemployment in the US is tapering. The Euro appears to be breaking up (it’s not yet, but it’s a fear that nobody was thinking about a month ago).

Every single one of those things point to a reversal of the trends we’ve seen all year. And yet — financials not included (see: Goldman Sachs) the market didn’t really care.

But the market finally seems to be giving some ground, so with Europe trembling, and the PPI rising faster than expected (suggesting, possibly that the Fed’s hand on inflation will be moved to act), could the stock market finally be taking a clue?

We welcome your thoughts.

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