Hey, Ross here:
Let’s end the week with an indicator most people don’t pay attention to enough.
Chart of the Day
This is the US Dollar Index (DXY) which broadly tracks the strength of the US dollar.
It’s been a downtrend for over a month, hitting lows last seen back in April of last year. It’s also just fallen through the support level formed by the lows in February this year.
Historically, a rapidly strengthening US dollar has been a headwind for the stock market.
Notice the left side of the chart showing the DXY progressively increasing over 2022, all while the stock market was falling.
Then notice how it peaked around October 2022 – about the same time as the S&P 500’s previous bottom.
In short, the weakening DXY is a good sign for stocks, and only adds to the evidence that a rally is coming our way.
P.S. Would you like special trade prospects and potential market moves sent directly to your phone? Text the word ross to 74121.
Insight of the Day
When the market is full of mixed messages – fall back on proven signals you can trust.
Inflation is cooling but a recession is coming. Stocks may be going up but earnings may be coming down. Jobs are strong but housing is weak.
We are in a market that’s full of contradictory messages like these. So it’s no surprise that many traders don’t know which way to turn.
But that’s actually good news. Because if everybody “knew” where the market was going, all advantages would be arbitraged away.
Uncertainty always creates opportunity.
I’m sharing many of these opportunities right here on this very newsletter.
But if you’d like to get the chance to act on these fast-moving trades days before you see them here – just click this link to become a member of my Stealth Trades Gold service.
Because we’re extending our Easter special – meaning for a very limited time, you can get a full year for just $0.99 – an absolute no-brainer deal. So take advantage of it while it’s still up.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
