Daily Traders Edge

Chart of the Decade: “THE Catalyst”

November 17
11:47 2022

If you’re still asking what it will take to spark a sustained rally in equities, it’s only because you’re not paying attention.

How is it not the US Dollar?

Find me a stronger negative correlation with equities over the past half decade or so.

Todays chart focuses more specifically on the performance of US Dollars relative to Emerging Market Currencies.

Notice how whenever the Dollar goes down, stocks absolutely love it:

Could this be an epic failed breakout in the US Dollar leading to another epic collapse in prices?

If so, just think about how well stocks will do in that environment.

Are you positioned for another ripper in equities?

Well if the Dollar really sells off, you better be positioned for it.

These are real opportunities.

And since we know the catalyst, we know what to focus on.

I’ve said it a thousand times and I’ll say it again: Investors are going to have a hard time making money long stocks if the Dollar remains strong.

Continue Reading at All Star Charts

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