Metals Rally As Dollar Fades

Generally, the leading industrial, and precious metal stocks will be the first equities to catch a big when the U.S. Dollar Index declines intra-day. This morning, traders can easily see how the SPDR Gold Trust (ETF) (NYSEARCA:GLD), ProShares Ultra Silver (ETF) (NYSEARCA:AGQ), and the PowerShares DB Gold Double Long ETN (NYSEARCA:DGP) are all catching an early bid as the dollar retreats from the open. All of these trading vehicles will signal inflation in the stocks market and that is what will usually happen when the U.S. Dollar Index declines.

Traders can also see strength in many of the leading industrial and base metal stocks. Leading stocks such as Freeport-McMoRan Copper & Gold Inc (NYSE:FCX), Rio Tinto plc (NYSE:RIO), and BHP Billiton Limited (NYSE:BHP) are all trading higher this morning. Traders should realize that if the U.S. Dollar Index started to trade higher all these stocks could pullback from the morning highs. As long as the U.S. Dollar continues to fade or trade lower during the session the metal stocks will likely hold up fine today.

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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