The Chart That Saved The Markets Again

Once again, the U.S. Dollar Index futures faded after the opening bell rang at the New York Stock Exchange. Nearly every trading session when the U.S. Dollar Index is higher before the market opens for official trading it will fade and sell off. Well, today was no exception as the U.S. Dollar Index pulled back by over 0.20 cents from its pre-market high. When the U.S. Dollar Index declines, stocks and commodities will inflate and trade higher. The chart of the U.S. Dollar Index is by far the most important chart that any trader can follow. Traders that do not have a chart of the U.S. Dollar Index futures (DX M2) can follow the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP).

Some leading equities that will generally trade inverse to the U.S. Dollar Index include Sprott Physical Gold Trust (NYSEARCA:PHYS), ProShares Ultra Silver (ETF) (NYSEARCA:AGQ), and the iPath Dow Jones UBS Copper Total Return Sub-Index ETN (NYSEARCA:JJC). All of these equities have traded off of the intra-day lows as the U.S. Dollar Index pulled back.

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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