Use access key #2 to skip to page content.

inthemoneystock (< 20)

It Is Still About The Dollar

Recs

0

June 17, 2011 – Comments (0)

This morning, the U.S. Dollar Index futures(DX U1) is trading lower by 0.60 cents to $75.62 per contract. When the U.S. Dollar Index declines the major stock market indexes inflate and trade higher. That is certainly the case today, as the S&P 500 e-mini futures trades higher by 11.75 points. Traders can clearly see from the chart below how the major stock indexes will trade opposite the U.S. Dollar Index. Should the U.S. Dollar Index catch a bid higher it would be prudent to expect the major stock indexes to pullback or decline intra-day.

Generally, when the U.S. Dollar Index declines traders can look for the leading commodity stocks to trade higher on the session. This morning, many leading commodity stocks such as U.S. Steel Corp.(NYSE:X) and Cliffs Natural Resources Inc.(NYSE:CLF) are struggling to catch a bid higher from the weak U.S. Dollar Index, therefore, these stock could trade much lower if the U.S. Dollar index rallies higher. It is very important for traders to judge the intra-day relative strength in each individual stock.


Nicholas Santiago
InTheMoneyStocks.com

0 Comments – Post Your Own

Featured Broker Partners


Advertisement