Can The U.S. Dollar Index Decline Enough To Save Markets?
The major stock indexes have been on a wild roller coaster ride today. The U.S. Dollar Index has sold off sharply lower since 11:30 am EST. As we all know by now, when the U.S. Dollar Index declines the major stock and commodity indexes inflate and trade higher. The U.S. Dollar Index is trading lower by 0.34 cents and that seems to be good enough to help keep these markets trading off the lows.
Some leading stocks that usually trade higher on the back of a falling U.S. Dollar Index include Exxon Mobil Corp.(NYSE:XOM), Cliffs Natural Resources Inc.(NYSE:CLF), and AK Steel Holdings Corp.(NYSE:AKS). These stocks can usually be bought when the U.S. Dollar Index breaks down or declines intra-day. On the flip side, Should the U.S. Dollar Index catch a bid and rally higher these stocks will usually be the first to decline and sell off.