The market is showing positive divergences in two major areas. These areas signal stimulus and possible bank recapitalization from the European Union and the ECB. Ultimately, the markets are signaling something big on the horizon that could cause the market to pop sharply in the short run. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $131.96 -1.74 (-1.30%).
The first positive divergence has occurred between the S&P 500 and the Dollar. These usually trade inverse to each…
Added by Bryan Leighton on May 30, 2012 at 12:36pm — No Comments
The markets are taking a beating today. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $130.44, -1.76 (-1.33%). While things look ugly, there is a major silver lining showing up. This is a positive divergence between the markets and the U.S. Dollar.
The Dollar and the markets have an inverse relationship. Whenever the Dollar rises, the markets sell. This can be clearly seen on any Dollar, S&P 500 chart spanning the past few years. While this relationship still remains…
Added by Bryan Leighton on May 23, 2012 at 12:06pm — No Comments
By now everyone should know that when the U.S. Dollar Index is strong the major stock and commodity markets will deflate and trade lower. Most leading commodity stocks are falling sharply lower today as the U.S. Dollar Index futures surge higher. Traders can easily see how the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) is trading higher by 0.17 cents to 22.51 a share.
This afternoon, most leading oil, mining, and coal stocks are trading sharply lower.…
Added by Bryan Leighton on May 15, 2012 at 3:58pm — No Comments
This morning, the major stock indexes have been declining since the opening bell. Often, when the major stock indexes decline the U.S. Dollar Index will come to the rescue by declining intra-day, that is not the case today. Usually, when the U.S. Dollar Index declines the major stock indexes will usually inflate and trade higher. On the flip side, when the dollar rallies the markets will deflate and trade lower. Today, the U.S. Dollar Index is surging higher since 9:50 am EST putting…Continue
Added by Bryan Leighton on May 4, 2012 at 11:21am — No Comments
The PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) has a clear head and shoulders pattern on the daily chart. Head and shoulders patterns are bearish in nature and usually mean more downside for that particular chart. This pattern has triggered on the UUP which is the Dollar tracking ETF. Because the Dollar trades inverse to the markets, the markets could see a little more upside in the coming days. This would be prior to the next fall that is on the horizon.
Added by Bryan Leighton on April 26, 2012 at 12:18pm — No Comments
Nearly every trading session when the stock market is lower the U.S. Dollar Index is higher. Well, that is certainly the case once again today. This morning, the U.S. Dollar Index futures (DX-M2) are trading higher by 0.38 cents to $79.69 per contract. While 0.38 cents does not sound like much in the U.S. Dollar Index; it can move markets. If you are a trader that does not have a chart of the U.S. Dollar Index you can follow the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP)…Continue
Added by Bryan Leighton on April 23, 2012 at 11:33am — No Comments
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…
Added by Bryan Leighton on April 16, 2012 at 3:39pm — No Comments
This morning, the U.S. Dollar Index topped out around 4:30 am EST. This was the same exact time that the S&P 500 Index e-mini futures (ES-M2) bottomed out. Traders can easily see how these two indexes continue to trade inverse to each other. When the U.S. Dollar is devalued it will inflate asset prices around the world. Traders can see how the large bank stocks are surging higher today. As long as this sector remains strong the major stock market indexes can trade higher. Leading…Continue
Added by Bryan Leighton on March 26, 2012 at 10:54am — No Comments
The precious metals are taking another hard hit today as money is flowing out. Not only is the Dollar stronger but the risk on trade is all the rage. The PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) is trading at $22.41, +0.11 (+0.49%). When traders and investors feel the economy is on the right path, there is no need to hold gold for safety. The recent collapse in the price of gold speaks to this. Today, the SPDR Gold Trust (ETF) (NYSEARCA:GLD) is trading at $159.63, -2.50…Continue
Added by Bryan Leighton on March 14, 2012 at 12:44pm — No Comments
Gold and silver collapsed in epic fashion as the Dollar had a rare sharp spike intra-day. This was just one of the reasons for the market fall off new 52 week highs. In this article, I will show you why the markets are ready to fall and on the verge of a steep correction.
The collapse in gold and silver must be mentioned first. The SPDR Gold Trust (ETF) (NYSEARCA:GLD) is trading at $167.10, -6.39 (-3.68%) and the iShares Silver Trust (ETF) (NYSEARCA:SLV) is trading at $33.82,…
Added by Bryan Leighton on February 29, 2012 at 12:29pm — No Comments
The iShares Silver Trust (ETF) (NYSEARCA:SLV) has had a great run in 2012. Many traders are wondering when it will start to collapse back down. The key is to look at the chart. By looking at the chart you can discover key entries and exits on longs and shorts that will make you millions.
Connect the highs from 2011. Drag that line all the way down to the current time frame. That is your target on the SLV. Once the level is tagged, a short can be taken.
Added by Bryan Leighton on February 22, 2012 at 1:34pm — No Comments
The markets are hovering slightly lower on the day with the SPDR S&P 500 ETF (NYSEARCA:SPY) trading at $135.06, -0.30 (-0.22%) and the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) trading at $62.99, -0.06 (-0.10%). As the markets remain near their recent highs, signals of a top are all around. Here are the reasons.
1. The media is euphoric, coaxing the retail investor into the market. Throughout history, when the retail investor jumps in, the top is at hand.
Added by Bryan Leighton on February 14, 2012 at 12:30pm — No Comments
Sometimes it is scary to see manipulation in full swing in the stock market. Actually, it is always scary to think such blatant manipulation can occur and by the leading powers in the "free" world. Let's set the stage. The markets opened slightly lower. No big deal here. They slowly inched lower on light volume, heading for the master support of $133.80 on the SPDR S&P 500 ETF (NYSEARCA:SPY). This level was the gap window from Friday and had also touched yesterday. Simply put, it is key…Continue
Added by Bryan Leighton on February 7, 2012 at 12:13pm — No Comments
The stock markets are once again trading inverse to the U.S. Dollar Index futures (DX H2). Traders can easily see this relationship by looking at the chart below. When the U.S. Dollar Index (red & green bars) declines, the S&P 500 Index (white & black) inflates and trades higher. This inverse relationship is as correlated as it gets. Use it to your advantage.
Added by Bryan Leighton on February 2, 2012 at 11:30am — No Comments
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…Continue
Added by Bryan Leighton on January 31, 2012 at 10:58am — No Comments
For over ten years now the major stock indexes have traded inverse to the U.S. Dollar Index. That inverse relationship is back in full force today. Anyone can easily see how the S&P 500 Index e-mini futures (ES H2) jumped off the morning lows as soon as the U.S. Dollar Index tumbled lower. All traders and investors should have a chart of the U.S. Dollar Index futures (DX H2) up at all times. If traders do not have the U.S. Dollar Index chart available the PowerShares DB US Dollar…Continue
Added by Bryan Leighton on January 27, 2012 at 10:14am — No Comments
The markets pushed into the master $133.30 level on the SPDR S&P 500 ETF (NYSEARCA:SPY). This level was given to members weeks ago as the probable short term top on the market. Sure enough, this level was hit early in the trading day and the markets reversed immediately. Obviously, shorts were taken and are in the money already. A negative close today would solidify a short term market top.
The crescendo of jubilation in the media and the public coincided perfectly with this…
Added by Bryan Leighton on January 26, 2012 at 12:24pm — No Comments
This afternoon, the Federal Reserve Bank announced that they will keep the fed funds rate at zero to a quarter percent until the end of 2014. This statement by the central bank has caused the U.S. Dollar Index to plummet intra-day. As we all know by now, when the dollar dips the markets flip. Everything in the market has rallied higher. Gold, silver, copper, oil, and just about every other commodity has soared since the announcement. The SPDR Gold Shares (NYSE:GLD) have jumped higher…Continue
Added by Bryan Leighton on January 25, 2012 at 4:00pm — No Comments
The U.S. Dollar Index is still the driving force behind every commodity move. This morning, the U.S. Dollar Index futures (DX H2) are trading lower by 0.53 cents to $79.69 per contract. When the U.S. Dollar Index declines it will usually mean that most every commodity will trade higher. That is certainly the case this morning as oil, copper, soybeans, wheat, rice, gold, and silver are all on the rise.
Traders can easily see the price of the iPath Dow Jones-UBS…
Added by Bryan Leighton on January 23, 2012 at 10:43am — No Comments
After the new year started with a substantial rally, the markets have been in sleep mode. Two consecutive days of flat action has the pros salivating over the likelihood of further upside. Today, the SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $127.56, -0.07 (-0.05%). Let's explore the bullish case on the market.
1. The market broke out of a triangular range on Tuesday. This is significant as the markets had been inside this range for months.
2. The last two days…
Added by Bryan Leighton on January 5, 2012 at 1:11pm — No Comments