Marc Pado Comments: Will The Dollar/Market Correlation Break Down? – The Wall Street Journal

The Wall Street Journal, December 7, 2009

Futures shot higher after the 8:30 a.m., as the markets geared up for what could be a big day on Wall Street. Interestingly, the dollar is also seeing significant strength as stocks rise. Could this mark the end for the lockstep dollar/stocks move — dollar down, stocks up and vice versa — we’ve been seeing for weeks now? “In the long-run, ‘it’s the economy, stupid.’ A market rally based on a lower dollar or low rates is good for a while, but the only way out of this hole is with jobs,” emailed Marc Pado, U.S. market strategist for Cantor Fitzgerald. “The key, average hourly workweek rose 2-tenths to 33.2, better than expected. If the dollar can rally and the market, as well, it will bode well for a continuation of the bull through the end of the year.”