The S&P 500 continued its remarkable bull market run last week, gaining +4.6% (total return), its best 1-week performance since mid-July.  The stock index is up +21.0% YTD, but even more impressive is the +60.5% gain achieved in the 7-months since falling to a bear market closing low on 3/09/09 (source: BTN Research). 
 
In a storyline that has been repeated by the last 3 presidential administrations, Treasury Secretary Tim Geithner went on record last week as believing "in a strong dollar" in spite of a 14-month downward movement in the currency that may suggest otherwise.  From Robert Rubin to Lawrence Summers to Paul O'Neill to John Snow to Hank Paulson to Tim Geithner, every Treasury secretary since 1995 has recited the "strong dollar" mantra.  Geithner's comments came amid unconfirmed reports that major oil producing countries in the Middle East would like to price oil in a currency other than the US dollar.  The reality however is that many American corporations that focus on exports are very happy with a weakening dollar since the cost of selling US exports in the global marketplace falls in a declining dollar environment (source: BTN Research).    
 
The deficit for fiscal year 2009 (i.e., the 12 months that ended 9/30/09) will be reported by the Treasury Department tomorrow.  Last year's record deficit of $455 billion will likely be obliterated by nearly $1.6 trillion of debt for the latest fiscal year (source: Treasury Department).