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There is only one way to get the stock market up and it does not come in pill form; it is a fall in the U.S. Dollar Index. I have been writing about the U.S. Dollar Index for years now and it is still amazing how so many traders and investors disregard this critical index. Everyone should remember that the U.S. dollar is the world's reserve currency and this is a global economy now. Today, the U.S. Dollar Index futures (DX-M2) are declining lower by 0.29 cents to $81.12 per contract. This drop in the dollar has rallied the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) higher by 1.12 percent. As long as the U.S. Dollar Index continues to sell off traders could expect higher prices in the near-term for the major stock indexes.
Some other sectors that will usually react positively to a weak U.S. dollar include iPath DJ-UBS Copper TR Sub-Idx ETN (NYSEARCA:JJC), United States Oil Fund LP (ETF) (NYSEARCA:USO), and the Market Vectors Agribusiness (ETF) (NYSEARCA:MOO). These same sectors will usually come under selling pressure when the U.S. Dollar Index is strong.
Some other sectors that will usually react positively to a weak U.S. dollar include iPath DJ-UBS Copper TR Sub-Idx ETN (NYSEARCA:JJC), United States Oil Fund LP (ETF) (NYSEARCA:USO), and the Market Vectors Agribusiness (ETF) (NYSEARCA:MOO). These same sectors will usually come under selling pressure when the U.S. Dollar Index is strong.