Can The U.S. Dollar Index Decline Enough To Save Markets?

The major stock indexes have been on a wild roller coaster ride today. The U.S. Dollar Index has sold off sharply lower since 11:30 am EST. As we all know by now, when the U.S. Dollar Index declines the major stock and commodity indexes inflate and trade higher. The U.S. Dollar Index is trading lower by 0.34 cents and that seems to be good enough to help keep these markets trading off the lows.

Some leading stocks that usually trade higher on the back of a falling U.S. Dollar Index include Exxon Mobil Corp.(NYSE:XOM), Cliffs Natural Resources Inc.(NYSE:CLF), and AK Steel Holdings Corp.(NYSE:AKS). These stocks can usually be bought when the U.S. Dollar Index breaks down or declines intra-day. On the flip side, Should the U.S. Dollar Index catch a bid and rally higher these stocks will usually be the first to decline and sell off.

About Nicholas Santiago 576 Articles


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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