Futures Off The Lows, Here Is Why
The major stock market indexes have rallied off of the pre-market morning lows. Once again, when the U.S. Dollar Index declines the major stock indexes will inflate and trade higher. The U.S. Dollar Index could be the most important chart for any trader or investor to follow at this time. If, the U.S. Dollar Index can plummet lower the stock market could probably rally. Is this really a sign of a healthy economy and market? The answer to that question is no, however, as a trader this is something that we must all know and understand.
Traders should realize that energy and commodity stocks will usually react the most to a weak U.S. Dollar Index. Commodity stocks such as Freeport McMoRan Copper & Gold Inc (NYSE: FCX), Southern Copper Corp (NYSE: SCCO), U.S. Steel Corp (NYSE: X), and Exxon Mobil Corp (NYSE: XOM) are likely to see bounces on any U.S. Dollar Index weakness. Traders that do not have access to the U.S. Dollar Index can follow the PowerShares DB US Dollar Index Bullish (NYSE: UUP).
Nicholas Santiago InTheMoneyStocks.com
