Bryan Leighton's Blog Posts Tagged 'DDM' (15)

Falling U.S. Dollar Saves The Markets Again

The most important chart that anyone can follow is a chart of the U.S. Dollar Index. The major stock indexes and most leading commodities will usually trade inverse to the world's reserve currency. For over ten years now the general stock market direction has moved opposite or inverse to the U.S. Dollar Index.



This morning, the U.S. Dollar Index futures (DX-M2) topped out shortly after the opening bell rang at the New York Stock Exchange. When the U.S. Dollar…

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Added by Bryan Leighton on April 16, 2012 at 3:39pm — No Comments

Once Again It Is Groundhog Day In The Markets

Once again, the major stock indexes rallied higher after a quick decline in the first hour of the trading session. This same pattern seems to be repeating nearly every trading day since late December 2011. Many traders and investors are now looking for this pattern to occur on a daily basis before the noon hour.



The trading volume on all of the major stock indexes remains extremely light and this will usually favor the upside in the stock market. This afternoon, the SPDR…

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Added by Bryan Leighton on February 13, 2012 at 3:40pm — No Comments

Groundhod Day Again And Again

Yesterday, we wrote about the major stock indexes declining in the first half of the trading session only to bounce higher throughout the afternoon. Well, it happened again today. The same exact pattern repeats nearly every trading day since mid-December.



 The trading volume in the SPDR S&P 500 Trust (NYSEARCA:SPY), and the SPDR Dow Jones Industrial Average (NYSEARCA:DIA) remains extremely light. The light volume will generally favor the upside as there are simply no…

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Added by Bryan Leighton on February 9, 2012 at 3:14pm — No Comments

Everyday Is Groundhog Day

Once again, the major stock indexes have found a low by the noon hour and then floated higher into the afternoon. Nearly everyday we see the same pattern repeat over and over. The trading volume remains extremely light which generally favors the upside in the stock market. Traders must remember the old market adage that states, never short a dull market. The words light volume can be substituted for dull. Since December 19, 2011 the average volume in the SPDR S&P 500 Trust…

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Added by Bryan Leighton on February 8, 2012 at 3:23pm — No Comments

The Inverse Trade Works Again

Once again, the inverse relationship between the U.S. Dollar Index and the major stock indexes works. This morning, the U.S. Dollar Index futures started the day higher and then just plummeted before the opening bell. This same pattern played out yesterday and the nearly everyday before that. Many traders are now looking for the early decline in the SPDR S&P 500 Index ETF (NYSE:SPY), or the SPDR Dow Jones Industrial Average (NYSE:DIA) as a buying opportunity for the day. Earlier…

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Added by Bryan Leighton on February 7, 2012 at 4:00pm — No Comments

Can The Markets Defy Gravity Again?

Nearly every trading day the major stock indexes will decline before the noon hour. This decline in the major stock market indexes usually leads to a light volume rally that lasts into the close. For example, yesterday the major stock indexes dropped sharply lower at the open only to find a low after the first hour and trade basically unchanged by the closing bell. This type of activity occurs nearly every trading day since December 19, 2011 when the Dow Jones Industrial Average (DJIA)…

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Added by Bryan Leighton on January 31, 2012 at 10:38am — No Comments

Light Volume And The Falling U.S. Dollar Keep Markets Buoyant

Nearly every trading session over the past month the major stock indexes rally after an initial morning decline. Some investors may view this action in the market as a sign of strength, however, the trading volume remains extremely light. Light volume will usually indicate a lack of institutional participation, or conviction by the big boys. This stock market looks to be moving higher by a handful of big firms that have the means to buy every market dip. Some traders and investors…

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Added by Bryan Leighton on January 30, 2012 at 3:58pm — No Comments

Markets Pause Ahead Of Earnings

This afternoon, leading aluminum producer Alcoa Corp (NYSE:AA) will report earnings after the closing bell. While Alcoa may not move the major stocks indexes much, it is an indication that the start of corporate earnings season is upon us. The trading volume over the past couple of weeks has been extremely light. Short term traders are looking forward to the increase in volume and volatility that is certain to hit the stock markets over the next month.…



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Added by Bryan Leighton on January 9, 2012 at 3:59pm — No Comments

Always Beware Of The Bernank

This morning, all of the major stock indexes are surging higher at the open. The early rally is sparked by global central bank intervention, The central banks around the world will provide liquidity to the large banks that cannot borrow. We must all believe that the Federal Reserve Chairman Ben Bernanke is behind this move. The action by the central banks around the world is causing a massive short squeeze in the markets. Just think about how many investors went short yesterday as the…

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Added by Bryan Leighton on November 30, 2011 at 10:53am — No Comments

Is Technology The Next Sector To Breakdown?

The technology heavy NASDAQ Composite has held up better than the other major stock indexes such as the Dow Jones Industrial Average, S&P 500 Index and the Russell 2000. As long as the NASDAQ Composite holds up and does not breakdown, this tells us that people are still willing to take on risk. Please remember, most stocks in the NASDAQ Composite do not issue dividends. The majority of stocks in the NASDAQ are considered growth stocks, therefore, if this sector breaks down it is a… Continue

Added by Bryan Leighton on September 30, 2011 at 11:24am — No Comments

Pick Your Poison

In order for the stock market to rally or trade higher the U.S. Dollar Index has to decline. This has been proven repeatedly over the past ten years. Traders can simply look at an intra-day chart of the U.S. Dollar Index and see how quickly the SPDR Dow Jones Industrial Average (NYSE:DIA) will deflate and trade lower as soon as the U.S. Dollar Index catches a bid higher. This afternoon, the Dow Jones Industrial Average (DJIA) was trading higher by more than 300.0 points, as soon as the… Continue

Added by Bryan Leighton on September 27, 2011 at 3:53pm — No Comments

Falling U.S. Dollar Saves The Day

It is pretty sad when the only way to get the stock market to trade higher is by selling off the U.S. Dollar Index (DX Z1). The U.S. Dollar Index measures the value of the U.S. Dollar versus six leading currencies such as the Euro 58.6%, Japanese Yen 12.6 %, Pound Sterling 11.9%, Canadian Dollar 9.1%, Swedish Krona 4.2%, and the Swiss Franc 3.6%. When the world's reserve currency declines the major stock indexes will inflate and trade higher. Politicians continue to say that they want a… Continue

Added by Bryan Leighton on September 19, 2011 at 3:41pm — No Comments

Forget The European Ménage à trois Here Is The Reason For The Rally

The major stock indexes have soared sharply higher this afternoon. The catalyst for the rally according to the media is the fact that Germany's Angela Merkel, France's Nicolas Sarkozy, and Greece's George Papandreou all agree that Greece should be part of the European Union. Greek bond yields are now favoring that Greece will eventually have to default, however, many investors are now speculating that Europe will introduce its own form of the bank bailout plan called TARP. While this news… Continue

Added by Bryan Leighton on September 14, 2011 at 3:58pm — No Comments

Shake And Bake Using The U.S. Dollar Index

Once the U.S. Dollar Index futures (DX U1) traded higher this afternoon the major stock indexes sold off. The Dow Jones Industrial Average just reversed a 70.0 point rally and are now trading in negative territory. Should the U.S. Dollar Index decline and sell off again the major stock indexes could reverse and move right back up. Simply put, the major stock indexes are trading inverse to the U.S. Dollar Index.



Options expiration is this coming Friday, therefore,… Continue

Added by Bryan Leighton on September 13, 2011 at 3:49pm — No Comments

Nothing Goes Down In Straight Line

The major stock indexes have plummeted sharply lower over the past two weeks. This morning, the Dow Jones Industrial Average is trading lower by nearly 300.00 points to 11,150.00. The selling pressure seems to be continuing as almost every sector besides gold and silver are trading sharply lower.



It is important to note that the stock market rarely declines straight down in a 90 degree free fall angle on the charts. Usually, markets that decline this much will usually stage a…
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Added by Bryan Leighton on August 8, 2011 at 10:43am — No Comments

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