Risk Assets Plunge On Dollar Rally (SPY, QQQQ, X, FCX, FXA, USO, GLD, SLV)

Tuesday's trading session could have long-term significance if what we are seeing in the current trading session is indicative of a large scale trend change. All of the developments are predicated on the activity in the U.S. Dollar. The People's Bank of China said today that it is raising its benchmark lending and deposit rates for the first time since 2007. This has led investors to dump stocks, commodities, and risk currencies and driven the dollar higher. Comments made by Treasury Secretary Tim Geithner are also likely driving dollar inflows. The big question now is if this is the beginning of a longer-term move in the greenback, which would signal that it is time to lighten exposure to stocks, commodities, and foreign currencies. All eyes will continue to be fixated on the performance of the dollar in the coming days in order to gauge whether this move has staying power. Risk assets are down across the board today. The SPDR S&P 500 ETF

has fallen 1% to $117.34. The PowerShares QQQ Trust ETF

, which tracks the performance of the Nasdaq 100, has lost 0.58% to $51.02. Metals stocks such as Freeport-McMoran

and United States Steel

are being hit hard. FCX has lost 3.13% to $93.29, and X is down 3.48% to $42.77. Gold and silver are also undergoing fairly substantial sell-offs as investors dump commodities across the board. The iShares Silver Trust ETF

has shed 3.13% to $23.21 and the SPDR Gold Trust ETF

is currently trading 2.84% lower at $130.46. Volume has been heavy in both names. NYMEX crude oil futures have lost $2.53, or $3.05, to $80.55. The United States Oil Fund ETF

has plunged 3.20% to $35.12. The Aussie Dollar is also plunging on the session as investors and traders dump riskier currencies in favor of safer alternatives. The CurrencyShares Australian Dollar Trust ETF

has fallen 2.15% to $97.45. The one area that is holding up relatively well is the agricultural complex. The PowerShares DB Agriculture Fund ETF

has lost just 0.49% to $28.46. The DBA has surged 14% in the last 3 months.