Traders and investors can look anywhere they want to find out what moves this stock market higher. Some traders are looking at lower bond yields for market guidance, others are looking at the leading stocks Such as Apple Inc. (NASDAQ:AAPL) to see where the markets are headed. The truth of the matter is that the markets are simply moving inverse to the U.S. Dollar Index. Traders can look the chart of the U.S. Dollar Index futures (DX Z1) and easily see the inverse relationship between the dollar and the major stock market indexes. This relationship did not begin today or this week, it has been in place way for ten years. If it is not broke don't fix it. Sure, there are times when the markets will not trade inverse to the U.S. Dollar Index, however, that will usually happen when the stock markets have extremely light volume. For example, around the Christmas and New Years holidays when the trading volume is extremely light and there are simply no sellers the U.S. Dollar Index will have little effect on the markets. Other then that time the U.S. Dollar Index will trade inverse to the major stock indexes.
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The U.S. Dollar Index Still Dominates Every Market Move
Posted, by inthemoneystocks on September 21st, 2011
Authored by, inthemoneystocks







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