By Nicholas Santiago on October 26th, 2010 10:33am Eastern Time
As long as the U.S. Dollar Index declines after the opening bell at the New York Stock Exchange the stock market will trade higher. We call this the 'Night of the Living Dead' trade. Every time the stock market gets knocked down or declines it just comes right back to life and trades higher as the U.S. Dollar Index declines intra-day.
In February, March, and April of this year the major market indexes were able to actually trade higher with the U.S. Dollar Index. However, throughout that time period the U.S. Dollar Index always declined after the opening bell. That is precisely what is taking place today. Remember what has happened in the past will happen again. When the U.S. Dollar Index declines the stock market inflates and trades higher.
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