Today’s Rally In A Chart

All any trader or an investor has to do to see why the stock market is trading higher today is to simply look at a chart of the U.S. Dollar Index. Today, the U.S. Dollar Index futures (DX-U2) plunged around 10:50 am EST. Once the U.S. Dollar Index started to decline the major stock indexes started to inflate and trade sharply higher on the session. The S&P 500 Index e-mini futures (ES-U2) rallied higher by nearly 20.0 points off of the morning lows as the U.S. Dollar Index sold off. The U.S. Dollar Index chart is clearly the most important chart that any trader can follow. Traders that do not have a U.S. Dollar Index can follow the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP).

Some leading equities that will rally and inflate higher when the U.S. Dollar Index declines includes United States Oil Fund LP (ETF) (NYSEARCA:USO), Exxon Mobil Corporation (NYSE:XOM), Market Vectors Agribusiness (ETF) (NYSEARCA:MOO), and the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA). Traders should remember that when the U.S. Dollar Index rallies these same equities will deflate and trade lower.

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Your email address will not be published.


*