The strong negative correlation between stocks and the US Dollar has been consistent since 2016.
When the Dollar is weak, stocks rip. End of story.
Look at how well stocks did in the 4th quarter while the US Dollar Index had its first 3 straight months of losses since the end of Covid, which if you recall sparked the greatest 52-week period for returns in the history of the stock market.
I still think it's important to focus on the Dollar, so here are some potential levels of future interest:
Other major global currencies are regaining lost ground following a year dominated by dollar strength. It shows in the US Dollar Index $DXY as it continues to slide back within its prior multi-year range.
Lower lows for the DXY will not instill confidence in dollar bulls. Meanwhile, savvy investors should take its performance as a signal to buy other currencies.
Here are two of my favorite setups from the forex markets…
Check out the GBP/USD pair on the verge of completing a multi-month reversal formation:
Last week we held our January Monthly Conference Call, which Premium Members can access and rewatch here.
In this post, we’ll do our best to summarize it by highlighting five of the most important charts and/or themes we covered, along with commentary on each
It's the weekly currency edition of What the FICC?
The US dollar index $DXY registered a "death cross" last week, confirming a bearish trend reversal.
But it's not the confirmation of the dollar downtrend that has my attention. It's what the signal suggests for stocks in the coming months and quarters.