Hey, Ross here:
And before we head off for the weekend, let’s look at a chart that has been inversely correlated with the stock market’s performance this year.
Chart of the Day
This is the DXY – the U.S. Dollar Index.
And as you can see, it has largely been inversely correlated to the stock market this year.
When the markets were going up – it was going down. And when markets were going down – it was going up.
The DXY has been rising sharply since late July – right when the stock market peaked for the year.
It’s now very close to a resistance level.
If it fails to break past that level and starts falling again – that could signal the start of the next leg upward.
Until then – stay cautious.
Insight of the Day
Good positioning happens before the market makes a big move – not after.
A quick word about good positioning in trading – it’s something that happens before the market makes a big move, not after.
That’s why even though the market is currently range-bound – I’m still recommending positions, although I am a lot more cautious.
And right now, one of my strategies is up nearly 20% – counting both wins and losses – since August.
It’s a strategy based on one of the most trusted chart patterns I’ve ever seen – and thrives during pullback periods.
So, if a nearly 20% return in the middle of a pullback sounds good to you…
All you have to do is click here to find out more about this strategy.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
