If US Dollar Index below 105, Buy Stocks!

JC Parets
March 13, 2023

Historically they’re all usually just making a big deal about things that are not a big deal.

It's their job to make noise. And in some cases, it's not even their job, humans just like to overreact and make a lot of noise.

As investors, it's our job to ignore.

We don't care about their fed policies. We're not interested in arguing about wars. I don't care who the president is. And a "bank crisis" is laughable these days, compared to what I had a front row seat to back in 2008.

They make noise. We ignore. It's that simple.

Late last week when people were panicking, I was right here telling you we wanted to buy stocks.

Why?

Because in bull markets, it pays well to own stocks.

Besides, the Dollar was falling apart. So if stocks were about to collapse and this was 1929 all over again (lol btw), then the Dollar would be ripping.

It was not.

That was the signal. It still is.

If the US Dollar index is below 105, we want to be buying stocks very aggressively.

Look at that bearish momentum divergence that confirmed last week. It took place right near former resistance levels, which makes perfect sense.

But again, it was the safety trade, or lack thereof in this case, that really stood out last week.

That was the signal.

Now as far as what to buy goes, we've got a whole list of stocks and specific sectors that we're focused on.

The buy levels are clear and the trend for stocks is higher. It's been higher for 9 months now.

Historically in bull markets it pays to own stocks.

"When your offense is on the field you want to call your offensive plays", is how I learned it.

So in addition to what we're buying, that can be found in our Rangefinder App, I thought the canary during this weekend's trading was the strength in Crypto.

We want to own Bitcoin and Ethereum very aggressively if they are trading above their late 2017 - early 2018 highs:

If the Dollar is below 105, it's risk on!

If it loses 100, then it's a melt up.

The vehicles to express this thesis have been laid out.

The BTC & ETH above are two more that I really like for this bull market.

How about you?

What's your favorite play to call here?

Chime in here.

We love to hear from you!

JC

 

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