Slightly Lower Open, All Eyes On The Dollar

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Slightly Lower Open, All Eyes On The Dollar

Presented by Nick Santiago February 22, 2012 09:51AM

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This morning, the S&P 500 Index e-mini futures (ES H2) are trading lower by 2.75 points to 1357.25 per contract. Once again, the U.S. Dollar Index is trading higher before the opening bell. As you all probably know by now, when the U.S. Dollar Index futures (DX H2) are higher the major stock market indexes are generally lower. The opposite effect will take place if the U.S. Dollar Index declines, the leading stock and commodity markets will usually trade higher. Nearly every trading day when the U.S. Dollar Index is higher before the opening bell it will have a tendency to decline when the stock market opens for trading. Every trader should have a chart of the U.S. Dollar Index up at all times. If you do not have a chart of the U.S. Dollar Index, you can use PowerShares DB US Dollar Index Bullish(NYSEARCA:UUP), or the PowerShares DB US Dollar Index Bearish (NYSEARCA:UDN).

Last night, the Asian markets were mostly higher, however, the Sensex Index (India) closed lower by 1.50 percent. This tells us that the Indian ADR's could be weak at the start of trading in the United States. Some Indian stocks that could be weak at the open include Tata Motors Ltd (NYSE:TTM), Infosys Ltd (NASDAQ:INFY), and the India Fund (NYSE:IFN).

Last modified on Wednesday, 22 February 2012 11:00

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