Can The U.S. Dollar Decline Enough To Save The Day?

This morning, the U.S. Dollar Index futures (DX-U2) just plunged as the opening bell rang at the New York Stock Exchange. As many of you know by now, when the dollar dips the market flips. Will the U.S. Dollar Index futures continue to decline throughout the trading session? Short term traders should watch for intra-day support on the U.S. Dollar Index futures around the $81.80, and $81.62 levels. All traders and investors must continue to follow the U.S. Dollar index very closely. Traders that do not have a chart of the U.S. Dollar Index can follow the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP).

Some leading stocks that will generally trade inverse to the U.S. Dollar Index include Freeport-McMoRan Copper & Gold Inc (NYSE:FCX), Southern Copper Corp (NYSE:SCCO), iPath S&P GSCI Crude Oil Total Return (NYSEARCA:OIL), and the iShares Silver Trust (ETF) (NYSEARCA:SLV). Traders and investors must realize that a stronger U.S. Dollar Index will generally help to deflate these same equities.

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.

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