Skip to main content

US Dollar: Turn Down For What?

March 25, 2024

That was the highest weekly close for the US Dollar Index since early November.

The trend has been higher for the US Dollar throughout the entire 1st quarter of 2024.

Remember, the Dollar bottomed towards the end of December in 2023.

So how much higher can the Dollar go?

The US Dollar has been the only "safe haven" in a world full of risk assets.

We know it's NOT the US Treasury Bond Market.

In fact, the bond market has likely been a major cause of most of the volatility we've seen over the past few of years.

Treasury Bonds have been the opposite of safe haven.

So what is the Dollar trying to tell us?

Has it been heading higher all year as a warning of what's about to come for risk assets?

Or are we now just so far along in this bull market, and correlations have come off so much, that they're less reliable than they were earlier in the cycle?

Hence the current question. To quote the great Atlanta-born poet Lil Jon, and his French associate DJ Snake, "Turn down for what?"

That's the big question I've been asking myself as I continue to see that strength coming from the US Dollar.

What do you think the Dollar is trying to tell us?

Is it something to ignore? Or something to be aware about?

How important is this from a scale of 1 to 10?

Let us know what you think. We love to hear from you!

Either way, there is a strategy for every type of market environment.

If we're bullish in a low volatility environment, there's an ideal strategy for that. And even if we're bearish in a low volatility environment, there's a way to approach that as well.

However, if volatility starts to pick up and we're bullish a stock in a high volatility regime, we have a plan for that. And if we're bearish and volatility is high, we know what we want to do then as well.

There are only 4 possible scenarios if we're looking to put on a directional bet on a stock or ETF.

And remember, this is true regardless of time horizon. This basic principle applies for both short-term traders AND longer-term investors.

Join us this Thursday @ 4:30PM ET and we'll walk you through the perfect strategy for each of the 4 possible scenarios you'll find yourself in for the rest of your trading & investing life.

Click here to Join us FREE