Here Is the Deal

This is a discussion on Here Is the Deal within the General Trading Chat forums, part of the Reception category; This morning the U.S. Dollar Index is trading lower by 0.04 to $85.98. As we all know by now the ...

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Old Jun 30, 2010, 4:22pm   #1
Joined Jan 2009
Here Is the Deal

This morning the U.S. Dollar Index is trading lower by 0.04 to $85.98. As we all know by now the dollar is the driving force in the market. When the dollar rises stocks simply deflate, and when the dollar declines stocks will simply inflate. This inverse relationship between the dollar and stocks has been very strong for quite a while. Until something changes and these two charts disconnect or decouple the dollar must be followed. As of late the stock market has still been weak regardless of the dollar. Therefore, the inverse dollar relationship with the stock market is reactionary and not proportional.

The ADP Employer Services report was looking for a gain of 60,000 private sector jobs and the report only showed a gain of 13,000. This was just more bearish economic news for the market, however, the market is holding up so far at the open. We shall see if the stock indexes can hold up throughout the session as every bounce higher is being sold recently.

Tesla Motors Inc (NASDAQ:TSLA) had a very successful IPO yesterday closing sharply higher than it's offering price. Today TSLA is trading higher by 1.27 to $25.18. This stock may need to consolidate yesterday's gain.

Spot crude is trading slightly lower to start the day at $75.82. The popular United States Oil Fund (NYSE:USO) is trading higher by 0.08 to $34.26. Should the dollar pullback oil may catch a bid higher. Other commodity names trading higher are United States Steel Corp (NYSE:X), and Cliffs Natural Resources (NYSE:CLF). Both of these names are extremely oversold on the daily charts and can be due for a bounce.

The bottom line is the movement of the U.S. Dollar. Should the dollar dip the stock market indexes will inflate and should the dollar rise the stock markets will inflate. Watch the dollar as it is still the most important chart out there.

Nicholas Santiago
Chief Market Strategist

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Old Jun 30, 2010, 9:10pm   #2
Joined Jun 2010
Re: Here Is the Deal

Great post - really helpful. Where do you things going?
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Old Jun 30, 2010, 9:44pm   #3
Joined Dec 2003
Re: Here Is the Deal

Quote:
Originally Posted by InTheMoneyStocks View Post
This morning the U.S. Dollar Index is trading lower by 0.04 to $85.98. As we all know by now the dollar is the driving force in the market. When the dollar rises stocks simply deflate, and when the dollar declines stocks will simply inflate. This inverse relationship between the dollar and stocks has been very strong for quite a while. Until something changes and these two charts disconnect or decouple the dollar must be followed. As of late the stock market has still been weak regardless of the dollar. Therefore, the inverse dollar relationship with the stock market is reactionary and not proportional.

The ADP Employer Services report was looking for a gain of 60,000 private sector jobs and the report only showed a gain of 13,000. This was just more bearish economic news for the market, however, the market is holding up so far at the open. We shall see if the stock indexes can hold up throughout the session as every bounce higher is being sold recently.

Tesla Motors Inc (NASDAQ:TSLA) had a very successful IPO yesterday closing sharply higher than it's offering price. Today TSLA is trading higher by 1.27 to $25.18. This stock may need to consolidate yesterday's gain.

Spot crude is trading slightly lower to start the day at $75.82. The popular United States Oil Fund (NYSE:USO) is trading higher by 0.08 to $34.26. Should the dollar pullback oil may catch a bid higher. Other commodity names trading higher are United States Steel Corp (NYSE:X), and Cliffs Natural Resources (NYSE:CLF). Both of these names are extremely oversold on the daily charts and can be due for a bounce.

The bottom line is the movement of the U.S. Dollar. Should the dollar dip the stock market indexes will inflate and should the dollar rise the stock markets will inflate. Watch the dollar as it is still the most important chart out there.

Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com
Click the image to open in full size.
USD (DXY)Isn't that simple ,but if you're the same chap looking for a thin upward pre holiday market this week then ..have you considered taking up joinery or something ?
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Old Jun 30, 2010, 9:52pm   #4
Joined Dec 2003
Re: Here Is the Deal

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Originally Posted by chump View Post
USD (DXY)Isn't that simple ,but if you're the same chap looking for a thin upward pre holiday market this week then ..have you considered taking up joinery or something ?
I apologise the other idiots name was gareth ..try plumbing !
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