Use access key #2 to skip to page content.

inthemoneystock (< 20)

Can The Dollar Dip Enough To Save The Day?

Recs

0

January 30, 2012 – Comments (0) | RELATED TICKERS: RIO , UUP , SCCO

This morning, the U.S. Dollar Index futures (DX H2) are trading higher to start the day. As we should all know by now, when the dollar starts off strong the major stock indexes will usually be weak. That is certainly the case this morning as the major stock indexes come under early selling pressure. Very often, the U.S. Dollar Index will decline once the opening bell rings at the New York Stock Exchange. If the dollar begins to decline intra-day the major stock indexes will trade off of the morning lows. Even this morning, once the stock market officially opened at 9:30 am EST the U.S. Dollar Index dipped off the morning highs helping all of the major stock indexes to catch a small bid. Traders must remember when the stock markets trade higher it will most always mean that the U.S. Dollar is losing value and trading lower. This inverse relationship between the U.S. Dollar and the major stock market indexes has occurred for over 10 years now.

Some leading stocks that will trade inverse to the U.S. Dollar Index will include Southern Copper Corp (NYSE:SCCO), Exxon Mobil Corp (NYSE:XOM), and Rio Tinto Plc (NYSE:RIO). All of these leading stocks are declining lower today on the back of the stronger U.S. Dollar. Traders should expect these stocks to remain under pressure as long as the U.S. Dollar Index continues to be strong.

Nicholas Santiago
InTheMoneyStocks.com

0 Comments – Post Your Own

Featured Broker Partners


Advertisement