The U.S. Dollar Index Drives Every Move

Once again, the U.S. Dollar Index futures (DX H2) declined at 9:30 am EST to help keep the major stock indexes from declining further. Nearly every trading day that the U.S. Dollar Index starts the day higher it fades once the stock market opens. Traders must remember, if the U.S. Dollar Index rallies higher throughout the trading day the major stock indexes will likely come under some selling pressure. The trading volume is extremely light today as the majority of market participants recover from a late night watching the Superbowl.

When the U.S. Dollar shows strength traders can watch for weakness in other leading currencies and commodities. The CurrencyShares Euro Trust (NYSE:FXE) is trading lower this morning as the U.S. Dollar still remains positive. Most leading commodity stocks are also trading slightly lower. Leading commodity stocks such as Freeport McMoRan Copper & Gold Inc (NYSE:FCX), Southern Copper Corp (NYSE:SCCO), and Teck Resources Ltd (NYSE:TCK) are trading lower to start the day.

About Nicholas Santiago 575 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.

Visit: InTheMoneyStocks

Be the first to comment

Leave a Reply

Your email address will not be published.


*