Is Anyone Watching Any Other Chart?
At this time, almost every trader in the world is watching the U.S. Dollar Index(DX) chart. This morning, the U.S. Dollar Index has pulled back after the opening bell rang at the New York Stock Exchange. This decline in the U.S. Dollar has caused the major stock indexes to inflate and trade higher from a gap lower open. The U.S. Dollar index chart is by far the most important chart in the stock market right now.
Energy and commodity stocks are usually the first equities to bounce or trade higher when the U.S. Dollar Index pulls back or declines intra-day. This morning, stocks such as Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), United States Steel Corp.(NYSE:X), and Alpha Natural Resources Inc.(NYSE:ANR) are all trading higher on the session. These stocks are very sensitive to the U.S. Dollar Index and could easily pullback if the dollar begins to catch a bid. Essentially, every trade is a dollar trade at this time.