The Wizard Of OZ Behind This Market

Nearly everyday the market repeats the same pattern. Today for instance, the S&P 500 futures were trading lower ahead of the opening bell. This move lower for the index futures tells us the U.S. Dollar index is trading higher, as was the case this morning. Then it happens, almost as if it were set to a clock; the U.S. Dollar index begins to sell off sharply from the premarket highs. As the dollar declines the stock market indexes rally.

This same scenario can be seen on any given trading day, whenever the major stock indexes get in trouble and close to a technical support level. Look at the U.S. Dollar index chart today as this is a perfect example of what takes place. As this occurs, so often one can see how the market and the U.S. Dollar index can both trade higher on a daily and weekly chart. This is because the dollar declines once the U.S. market opens. Please remember that the U.S. Dollar index trades 24 hours a day.

Obviously institutional computer programs are simply trading inverse to the dollar once the opening bell rings at the New York Stock Exchange. Therefore, the intra-day U.S. Dollar index chart is the most important chart to follow. The only time the stronger dollar does not have a negative effect on the market is when trading volume is extremely light. This has also been the case during the month of February and March. Historically the months of February and March are very heavy trading volume months, however, this March has been lighter than August 2009 which is the peak of the summer doldrums. Remember light volume favors the upside.

Whenever the dollar fades from the open traders can look at most commodity and agriculture stocks to catch a bid. Some names that rallied from today’s declining dollar include Potash Corp./Saskatchewan (NYSE:POT), Exxon Mobil Corporation (NYSE:XOM), SPDR Gold Trust ETF (NYSE:GLD), Freeport-McMoRan Copper & Gold Inc (NYSE:FCX), United States Steel Corporation (NYSE:X), and most other inflationary stocks.

You should see my news letter “Did you know?” at this forum to know predictions about indexes as S&P 500, DJIA, Dollar,…

Good stuff here
I would be interested to see a few dollar cross currency pairs on that chart. I would not expect as high a correlation as your chart has but I bet you could pick a direction a pair is going to move in the short term. I will have to look into this some more.

Nearly everyday the market repeats the same pattern. Today for instance, the S&P 500 futures were trading lower ahead of the opening bell. This move lower for the index futures tells us the U.S. Dollar index is trading higher, as was the case this morning. Then it happens, almost as if it were set to a clock; the U.S. Dollar index begins to sell off sharply from the premarket highs. As the dollar declines the stock market indexes rally.

This same scenario can be seen on any given trading day, whenever the major stock indexes get in trouble and close to a technical support level. Look at the U.S. Dollar index chart today as this is a perfect example of what takes place. As this occurs, so often one can see how the market and the U.S. Dollar index can both trade higher on a daily and weekly chart. This is because the dollar declines once the U.S. market opens. Please remember that the U.S. Dollar index trades 24 hours a day.

Obviously institutional computer programs are simply trading inverse to the dollar once the opening bell rings at the New York Stock Exchange. Therefore, the intra-day U.S. Dollar index chart is the most important chart to follow. The only time the stronger dollar does not have a negative effect on the market is when trading volume is extremely light. This has also been the case during the month of February and March. Historically the months of February and March are very heavy trading volume months, however, this March has been lighter than August 2009 which is the peak of the summer doldrums. Remember light volume favors the upside.

Whenever the dollar fades from the open traders can look at most commodity and agriculture stocks to catch a bid. Some names that rallied from today’s declining dollar include Potash Corp./Saskatchewan (NYSE:POT), Exxon Mobil Corporation (NYSE:XOM), SPDR Gold Trust ETF (NYSE:GLD), Freeport-McMoRan Copper & Gold Inc (NYSE:FCX), United States Steel Corporation (NYSE:X), and most other inflationary stocks.

It’s very amazing information.
Thank you very much