By Nicholas Santiago on June 15th, 2010 9:40am Eastern Time
Again the story remains the same. When the U.S. Dollar trades lower the stock market indexes inflate and when the dollar rallies the stock market indexes deflate. Look at the stock market indexes yesterday afternoon when the dollar caught a strong bid higher. The major stock market indexes deflated and reversed over 100 points on the Dow Jones Industrial Average. This moring the U.S. Dollar Index is trading lower by 0.29 cents to $86.21. This is helping to inflate the S&P 500 e-mini futures by 6.75 to 1093.00. The U.S. Dollar will have good intra-day support around the $85.85 level.
This morning many commodity stocks are positive. United States Steel Corp (NYSE:X), Freeport Mc MoRan Copper & Gold (NYSE:FCX), and Southern Copper Corp (NYSE:SCCO) are all trading higher on the back of the weaker U.S. Dollar. The United States Oil Fund (NYSE:USO) is trading higher by 0.27 to $34.61.
Simply put when the dollar declines most commodity related stocks will inflate and trade higher. The dollar still remains the most important chart in the stock market.
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