All Eyes Here

Traders must pay close attention to the U.S. Dollar Index. This morning, the U.S. Dollar Index has rallied sharply higher since 8:00 am EST. Yesterday, the U.S. Dollar Index plunged lower by before the closing bell helping to inflate the major stock and commodity indexes. Traders will notice when the U.S. Dollar Index declines the major stock indexes will inflate and rally higher. Obviously, the opposite is true when the U.S. Dollar Index rallies higher, stocks and commodities will decline. Leading stocks such as Chevron Corp.CVX, Freeport McMoRan Copper & Gold Inc.FCX, and Cliffs Natural Resources Inc.CLF will usually react positive when the U.S. Dollar Index declines. These same market leaders will sell off when the U.S. Dollar Index trades higher. Traders and investors must keep their eyes glued to the U.S. Dollar Index chart at all times. This inverse relationship between the U.S. Dollar Index and the major stock indexes is especially important intra-day. The U.S. Dollar Index will have short term intra-day resistance around the $74.80 area. Nicholas Santiago InTheMoneyStocks.com