Around 11:00 am EST the U.S. Dollar Index rallied sharply higher off its morning lows. When the dollar pops the stock market drops. Short term traders must keep one eye on the U.S. Dollar Index chart at all times, as it seems to be the only chart that matters. Since June 7, 2010, the U.S. Dollar Index has declined by 17.0 percent creating a massive stock and commodity rally. When the U.S. Dollar Index rallies it simply deflates the stock markets in a short time. Just look at how the U.S. Dollar Index bounce has deflated the markets lower today.
This afternoon oil, gold, silver, and most leading stocks are trading sharply lower on the back of some minor U.S. Dollar strength. Should the U.S. Dollar Index pullback intra-day it would be prudent to expect bounces in most commodities and stocks. Right now the markets are trading inverse to the dollar and this relationship is all that matters.
Nicholas Santiago
InTheMoneyStocks.com
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InTheMoneyStocks.com is a research and consulting company focused on guiding investors, swing traders and day traders to financial success. Their Chief Market Strategists analyze the markets while making calls on everything from stocks to commodities and currencies. Their goal is to not only guide their subscribers but also teach them their proprietary methods leading them to become investing and trading masters.
Nicholas Santiago
