All Eyes Should Be On The Dollar

The chart of the U.S. Dollar Index is still the most important chart that any trader can follow. As many of you know by now, when the U.S. Dollar declines the major stock indexes around the world will generally inflate and trade higher. This morning, the U.S. Dollar Index futures (DX-U2) are declining lower by 0.31 cent to $82.32 a share. This weak action in the U.S. Dollar Index is helping to keep the markets buoyant today. Should the U.S. Dollar Index start to catch a bid higher during the trading session traders should expect the market indexes to come under some selling pressure. Traders that do not have a chart of the U.S. Dollar index available can follow the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP).

Some leading equities that trade inverse to the U.S. Dollar Index include ProShares Ultra DJ-UBS Crude Oil (NYSEARCA:UCO), Deutsche Bank AG DB Gold Double Long ETN (NYSEARCA:DGP), and the United States Gasoline Fund LP (NYSEARCA:UGA). All of these equities have held up very well lately as the U.S. Dollar Index has been weak. Should the U.S. Dollar Index start to strengthen traders should expect these equities to come under selling pressure.

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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