As we all saw yesterday, the major stock indexes soared sharply higher. The catalyst for the mega rally was the $1.4 trillion European Bank bailout. While the stock market investors perceived that news as good the U.S. Dollar Index plummeted. The U.S. Dollar Index futures (DX Z1) have declined by over $5.00 since October 4, 2011 and that is the real catalyst for the stock market rally. The details for where the European bailout money is going to come from is still very foggy. In other words, who is paying for this bailout? There are a lot of agreements in place, however, show me the money. The last time we checked the French were still begging the China for some cash. Let me let everyone in on a little secret, the Chinese are not dumb when it comes to money and they do not make poor investments. There will certainly be more to this story in the next few months.
