Chart of the Day: Here's Your Catalyst

October 26, 2022

This is still the one folks.

I've been in the camp that we're only getting bull markets in stocks around here if the Dollar is falling.

And well, a funny thing happened last month: The Dollar started falling, particularly against the most important crosses.

This happened once the journalists finally realized the Dollar had been so strong. And you know what tends to happen when they finally get the memo ;)

Take a look at the Dollar rolling over vs both the Euro and British Pounds:

Since 70% of the US Dollar Index peaked in September, stock market buyers have been very aggressive in October.

Just a little bit of Dollar weakness has sparked a serious rally in stocks. The Dow Jones Industrial Average is up every week this month, now working on its 4th consecutive week of gains (up over 10% in October).

I believe that for this to continue, and expand into other, worse performing, areas of the market, we're going to need to see further Dollar weakness.

This is the catalyst folks.

It always was.

I think for anyone with any exposure to equities, the US Dollar needs to be front and center.

There is no catalyst as important as this one.

Feel free to chime in.

Let me know what you think!

- JC