Once again, the U.S. Dollar Index (DX-M2) is declining lower after the opening bell rings at the New York Stock Exchange. This happens very often when the major stock indexes are breaking lower. You see, when the dollar declines everything in the stock and commodity markets will inflate and trade higher. Just the opposite will happen when the U.S. Dollar Index rallies, the stock markets will decline and deflate lower.



As you all know by now, J.P. Morgan Chase…

Nearly everyday, the U.S. Dollar Index (DX-M2) will decline after the opening bell rings at the New York Stock Exchange. Today is a perfect example of how the U.S. Dollar Index will sell off when the major stock indexes are close to a break down. Earlier today, the European markets were coming under some heavy selling pressure. The selling was also picking up in the U.S. markets, however, once the dollar declined the major stock indexes in the U.S. rallied back. Tomorrow, Spain is…

Once again, the U.S. Dollar Index futures (DX H2) declined at 9:30am EST to help keep the major stock indexes from declining further. Nearly every trading day that the U.S. Dollar Index starts the day higher; then proceeds to fade once the stock market opens. Traders must remember, if the U.S. Dollar Index rallies higher throughout the trading day the major stock indexes will likely come under some selling pressure. The trading volume is extremely light today as the majority of market…

The chart below basically says it all. The green and red bars represent the U.S. Dollar Index futures (DX H2), the black and white bars represent the S&P 500 Index e-mini futures (ES H2). Traders can easily see the inverse relationship between these two leading indexes. We can all forget the news and simply follow this chart. This critically important chart tells us the direction of the stock market. At this time, the stock market cannot trade higher with a stronger U.S. Dollar…

If you look at a chart of the U.S. Dollar Index futures (DX Z1) this morning you will see the sharp decline. If traders simply flip this chart upside down you will notice that the chart will resemble the S&P 500 Index today. When the dollar dips the markets flip. Traders should watch for some short term intra-day support on the U.S. Dollar Index futures around the $77.25 area. The U.S. Dollar Index chart is probably one of the most important charts that a trader could follow as the…

The major stock indexes have played out just the same way they did yesterday. The markets sold off into the noon hour only to reverse and trade sharply higher throughout the afternoon. The intra-day pivot points and the chart patterns in the session are almost exactly the same as yesterday. The catalyst for the stock market rally was once again the declining U.S. Dollar Index. The U.S. Dollar Index plummeted lower when the Prime Minister of Italy, Silvio Berlusconi, said that he may…

The only chart that traders need to pay attention to is the chart of the U.S. Dollar Index (DXY). When the U.S. Dollar Index declines throughout the trading session the major stock market indexes will inflate and trade higher. Obviously, leading commodity and energy stocks such as Cliffs Natural Resources Inc (NYSE:CLF) BHP Billiton Ltd (NYSE:BHP), and Chevron Corp (NYSE:CVX) will be some of the first stocks to react and trade inverse to the U.S. Dollar Index. It is important to note…

Once again, the decline in the U.S. Dollar Index futures (DX Z1) has saved the major stock indexes from another sharp decline. Traders can easily see that the U.S. Dollar Index futures topped out at 10:00 am EST. At the same time, the major stock market indexes found a low and have rebounded higher. The SPDR Dow Jones Industrial Average (NYSE:DIA) traded as low as $118.17 at 10:00 am EST, however, it is now trading at $119.32 since the U.S. Dollar Index declined. These are big…

The U.S. Dollar Index futures (DX Z1) just fell off a cliff before the opening bell. When the U.S. Dollar Index declines the major stock indexes will inflate and trade higher. You see, nobody really cares about the poor earnings reaction to Amazon.com Inc (NASDAQ:AMZN), and Broadcom Corp (NASDAQ:BRCM) earnings. The markets are simply reacting to the action in the U.S. Dollar Index. When the U.S. Dollar Index declines the major stock indexes inflate higher, however, if the U.S. Dollar…

This stock market seems to have an illness called schizophrenia. In late September, the major stock indexes declined lower, the Dow Jones Industrial Average dropped by over 1000.0 points only to recapture all of those declines in 15 trading days in the month of October. Ten percent rallies and declines are becoming normal trading ranges these days. In the past, the stock markets would rally higher or lower by ten percent in a year. These are certainly not normal times.…

This morning, the major stock indexes are trading higher continuing the gains from last week. The catalyst for the move higher in the stock market is once again the declining U.S. Dollar Index futures (DX Z1). Since the opening bell the DXY has sold off sharply. Traders should know by now, once the U.S. Dollar Index (DXY) declines the major stock indexes will inflate and trade higher and vice versa.



It seems that everything will inflate and trade higher with a…

Once again, the major stock indexes reversed an early decline. The rally in the S&P 500 Index came as the U.S. Dollar Index futures (DX Z1) plummeted around the noon hour. The inverse relationship between the U.S. Dollar Index and the major stock indexes continues to occur every single trading day. As long as the U.S. Dollar remains weak the major stock indexes will inflate and trade higher. In essence, every trade is a trade on the U.S. Dollar Index at this time.…

This morning and almost every morning for that matter, the major stock market indexes continue to trade inverse to the U.S. Dollar Index (DXY). Traders do not need to listen to the news coming out of Europe or Asia, they simply just need to follow the U.S. Dollar Index. When the DXY declines the stocks markets will inflate and trade higher. The opposite is true when the DXY trades higher, the major stock indexes will deflate and trade lower. Simply put, the U.S. Dollar Index is used like a…