By now everyone should know that the major stock indexes will usually trade inverse to the U.S. Dollar Index. Traders that do not have a chart of the U.S. Dollar Index futures (DX-U2) could follow the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP). Yesterday, the U.S. Dollar Index staged a massive rally and almost every leading stock index deflated and traded sharply lower. This is by far the most important inverse relationship in the entire market.
Some leading equities that will generally trade inverse the U.S. Dollar Index include the United States Gasoline Fund, LP (NYSEARCA:UGA), Energy Select Sector SPDR (ETF) (NYSEARCA:XLE), and ProShares Ultra Silver (ETF) (NYSEARCA:AGQ), and iPath Dow Jones UBS Copper Total Return Sub-Index ETN (NYSEARCA:JJC). Traders should note that all of the equities mentioned are commodities, they will usually be the first equities to react positively to a weaker dollar. On the flip side, if the dollar is strong these equities will usually be the first to deflate and trade lower.
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Leading Stock Indexes Deflate Sharply As U.S. Dollar Index Rises
Published 06/24/2012, 01:12 AM
Updated 07/09/2023, 06:31 AM
Leading Stock Indexes Deflate Sharply As U.S. Dollar Index Rises
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