Harry Rady Online – San Diego, CA

In mid June the stock market seems to be choosing a direction as the three month gain of 39.9 percent in the S&P index falters. After reaching a 12 year low on March 9, 2009, the stock market has been making an Olympian recovery which, according to many analysts, should have taken years to achieve instead of the gold medal-winning three months.

As the blitzkrieg rise began to slow investors and traders continued to (unsuccessfully) look for new signs of other economic strengthening.

After several comments made by the Russian finance minister, the dollar began to rise in comparison with other currencies. The stronger dollar forced prices for oil and other materials down, bringing to a halt the increase in prices recently of these energy and materials stocks.

Harry Rady is not surprised.

“The market just seems to keep driving the car into the wall and then wonders why it can’t keep driving,” Rady said.

As the dollar strengthens the prices of commodities, oil and other materials are heading downward. According to Harry Rady of Rady Asset Management, the recent surge in stocks has been too fast compared to the poor state of the economy.

“The market just seems to keep driving the car into the wall and then wonders why it can’t keep driving,” Rady said.

After deep drops in prices of stocks in Europe and Asia in response to the strengthening dollar, prices of commodities and other materials declined.

An additional blow came when the index of manufacturing in New York showed that demand was also faltered in the months of May and June.