These are not random moves

JC Parets
October 11, 2023

Now is the time.

If stocks are going to go, this is when they usually do it.

The Dow Jones Industrial Average is only 9% from making a new all-time high.

So is the S&P500.

And what do I think the catalyst is going to be?

Let me rephrase that....

What do I think the catalyst needs to be?

A weaker US Dollar!

The negative correlation between stocks and the Dollar has been strong for quite some time.

Anyone who has fought this trend has lost.

I've had a front row seat to people fighting this one for years, and I've seen each of them get destroyed.

Do you think it's a coincidence that the list of New 52-week highs peaked in July on the exact same day the Dollar bottomed?

Do you think it's just a coincidence that the New 52-week lows list peaked and the S&P500 bottomed on the exact same day the Dollar put in its top?

These are not random moves.

At least that's not the bet we're making. Because that would be a dumb bet.

If we're going to get the classic year end rally, that we've seen so many times before, I think you need that Dollar rollover.

105-105.50 is the level. If the US Dollar Index loses that, then it's over and I would expect to see new all-time highs for both the S&P500 and the Dow Jones Industrial Average.

You can fight these trends if you want.

I will not.

I've seen too many investors ruin everything trying to do that.

I'll let the market prove to me that these correlations have changed.

But all we've seen it do is reiterate that nothing has changed.

Come out to Chicago tonight and hang out with us at the CBOT.

We'll talk about it.

Here are the details.

JC

 

Also See: 

Welcome to the Year End Rally (Oct 10 2023)

 

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