Chart of the Day: This is it!

July 25, 2022

This to me is the big one.

The chart below is the one I'm watching the closest.

You guys have been hearing me pound the table about the US Dollar and what a hard time stocks and crypto will (continue to) have in a stronger Dollar environment.

So here you have it. This is the Emerging Markets ETF $CEW back to the same level where it bottomed out the only 2 other times it was ever down here:

Look how well stocks did each time EM currencies bottomed and the US Dollar struggled.

Is this time different?

Are you betting that the correlations are about to change?

Or are you with me that for stocks to do well in the second half of this year, we need to see a weaker Dollar - and therefore CEW rallying off those former lows?

Let me know. But that's how I see it.

Do you see it differently?

Let me know what you're thinking!

- JC