The Dollar Dips Again After The Opening Bell

Nearly every trading session when the U.S. Dollar Index futures (DX-M2) are stronger before the opening bell at the New York Stock Exchange (NYSE) they will sell off after the open. Yesterday, and today are perfect examples of this phenomenon. Obviously, we should all know by now that a weaker dollar will ultimately help to inflate the stock markets higher. The extremely light trading volume is usually bullish for the stock markets as there are simply no sellers in the marketplace. When you combine light volume with a falling U.S. Dollar it will usually create a perfect elixir for higher stock prices.

Precious metals are usually the first equities to react positive to a falling U.S. Dollar Index. This morning, the SPDR Gold Trust (ETF) (NYSEARCA:GLD), iShares Silver Trust (ETF)(NYSEARCA:SLV), and the iShares Gold Trust(ETF) (NYSEARCA:IAU) have all turned positive as the U.S. Dollar declines. The energy, and commodity sectors will usually catch a bid as well if the greenback declines. The United States Gasoline Fund (NYSEARCA:UGA), and the United States Oil Fund (NYSEARCA:USO) have also turned positive on the dollar sell off.

About Nicholas Santiago 575 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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