This DXY Chart Says It All
Nicholas Santiago | Mar 01, 2012 01:07AM ET
Yesterday morning, the U.S. Dollar Index futures (ES H2) surged higher from the morning lows. As we all should know by now, when the dollar climbs the stock and commodity markets will deflate and trade lower. That is exactly what we are seeing as the major stock indexes such as the Powershares QQQ Trust (NASDAQ:QQQ), SPDR S&P 500 Trust (NYSEARCA:SPY), and the SPDR Dow Jones Industrial Average (NYSEARCA:DIA) have faded from earlier highs.
Some stocks that will be adversely affected by the stronger U.S. Dollar Index are Exxon Mobil Corp (NYSE:XOM), Cliff Natural Resources Inc (NYSE:CLF), and Teck Resources Ltd (NYSE:TCK). Traders must remember that commodity stocks are usually the first to fall when the greenback gains in strength.
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