When The Dollar Dips The Market Flips

Often, when the U.S. Dollar Index rallies higher before the opening bell it will fade once the opening bell rings at the New York Stock Exchange at 9:30 am EST. That is exactly what took place this morning, as almost everything in the stock market is inflating. On the flip side, if the U.S. Dollar Index somehow catches a bid during the trading session it is likely that we see the major stock indexes deflate and trade lower. Today is the Wednesday before options expiration which is on May 20, 1011, therefore, this is usually most volatile trading session of the week.

Some equities that are trading higher from the decline in the U.S. Dollar Index include iShares Silver Trust (NYSE:SLV), SPDR Gold Shares (NYSE:GLD), Chevron Corp. (NYSE:CVX), and the Oil Services HOLDRs (NYSE:OIH). If you have not noticed all of these equities are part of the commodity complex which is the most influenced from a dollar decline.

About Nicholas Santiago 576 Articles

Affiliation: InTheMoneyStocks.com

Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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