From the Desk of Ian Culley @IanCulley
US dollar bulls are in control.
Fresh highs dot the US Dollar Index $DXY chart. Sellers are nowhere to be found.
The question is, when – or where – will buying pressure ease?
Expert technical analysis of financial markets by JC Parets
by Ian Culley
From the Desk of Ian Culley @IanCulley
US dollar bulls are in control.
Fresh highs dot the US Dollar Index $DXY chart. Sellers are nowhere to be found.
The question is, when – or where – will buying pressure ease?
by JC
US Treasury Bonds continue to be one of the best ways to underperform during bull markets.
Yesterday the Nasdaq100 closed at new ALL-TIME highs relative to US Treasuries.
In bull markets, the best stocks not only do well on an absolute basis, but they also outperform their alternatives.
Treasury Bonds are a good alternative to stocks, of course. Just not during raging bull markets: [Read more…]
by Ian Culley
From the Desk of Ian Culley @IanCulley
Market participants are searching for a new narrative.
Their uncertainty-fueled meandering is breeding US dollar strength.
Will the Fed cut, or will they simply do nothing at the March meeting?
No one knows.
But risk-on currencies have halted their recent advance. And luckily, we have price to light our way…
From the desk of Steve Strazza @Sstrazza
We held our January Monthly Strategy Session last week. Premium Members can access and rewatch it here.
Non-members can get a quick recap of the call simply by reading this post each month.
By focusing on long-term, monthly charts, the idea is to take a step back and put things into the context of their structural trends. This is easily one of our most valuable exercises as it forces us to put aside the day-to-day noise and simply examine markets from a “big-picture” point of view.
With that as our backdrop, let’s dive right in and discuss three of the most important charts and/or themes from this month’s call.
by Ian Culley
From the Desk of Ian Culley @IanCulley
It’s a new year with unlimited possibilities!
Even ol’ King Dollar is turning the page, embracing 2024 and everything it offers with open arms. It’s shaken off the selling pressure from 2023 and appears ready to turn over a new leaf.
But a bigger dollar rally might need a little help from a nearby friend.
More on this idea in a second.
First, let’s check out the US Dollar Index $DXY chart…
by JC
This is the video recording of our January 2nd Monthly Charts Live Strategy Session
by Ian Culley
From the Desk of Ian Culley @IanCulley
Y’all know the drill…
That dominant inverse relationship remains firm as stocks rip and the dollar dips.
The market’s message is clear: Buy stocks, sell dollars.
If you trade the FX markets, I have two new setups to ride the falling dollar…
by JC
The bull market continues as stocks keep making making new highs.
This is what happens in bull markets, stocks regularly go up.
The Dow Jones Industrial Average is making new all-time highs every day. The S&P500 and Nasdaq are right there too.
And the list of stocks on the NYSE hitting new highs is the longest its been in over 30 months.
But what’s driving these stock prices?
It’s not earnings. It’s not the Fed. It’s not the biden.
It’s the Dollar. It was always the Dollar.
When the Dollar is weak, stocks go up. It’s that simple. And when the Dollar is strong, stocks have a hard time making any progress: [Read more…]