Keep This Chart On The Radar
This morning, the major stock market indexes are soaring higher on the back of the weaker U.S. Dollar Index. As we should all know by now, when the U.S. Dollar Index declines the major stock market indexes climb higher. Traders must keep an eye on the U.S. Dollar Index at all times. If the U.S. Dollar Index rallies higher intra-day it can easily take a lot of steam out of this early morning rally.
Generally, leading commodity stocks are the first to inflate and trade higher on the back of the weaker U.S. Dollar, therefore, these leading stocks are usually the first to decline and deflate on the back of the stronger U.S. Dollar Index. Traders should watch and follow leading commodity stocks such as iShares Silver Trust(NYSE:SLV), AK Steel Holdings Corp.(NYSE:AKS), and Southern Copper Corp.(NYSE:SCCO) for inverse reactions to the U.S. Dollar Index.