The most important chart that any trader can follow is the chart of the U.S. Dollar Index. As you may already know, the major stock market indexes around the world all trade inverse to the U.S. Dollar. When the U.S. Dollar Index declines it will often help to inflate stocks, and commodities. This inverse relationship has been intact since 2001 and it is more evident everyday. Traders can easily see how the major stock market indexes have surged higher over the past two trading session as the U.S. Dollar Index has plunged lower. This relationship is as inverse as it gets at this time.
Some leading equities that will usually rally on the back of a lower or weaker U.S. Dollar Index include the SPDR S&P 500 ETF (NYSEARCA:SPY), ProShares Ultra DJ-UBS Crude Oil (NYSEARCA:UCO), iPath Dow Jones UBS Copper Total Return Sub-Index ETN (NYSEARCA:JJC), and the United States Gasoline Fund, LP (NYSEARCA:UGA) to name a few. Please remember, as fast as these equities can climb higher on the back of the weaker U.S. Dollar they will also deflate and decline when the U.S. Dollar trades higher. The U.S. Dollar Index chart is still the most important chart that any trader can follow at this time.