US Dollar Weakness Precedes Equity Weakness
Created on: 12/15/2020 2:41:34 PM   Last Update: 12/15/2020 2:41:58 PM Posted by: RTT

us-dollar-weakness-precedes-equity-weaknessWait what! Well, why would foreign capital run into a falling currency!

We have always heard that a falling US dollar helps growth.

But if Foreigners want to buy US assets they also do not want to lose on the currency. 

If a US equity market is high and the US dollar depreciates then so does the foreign investment in US assets.

Money likes appreciation in equity and currency value, if one falters, it will leave. 

If the US Dollar falls into the 80s (on the DXY) the SELL button for stocks will be near.

Watching ....

NOTE: The 2004-2006 time period (??) was the US Housing boom which plugged a few holes while foreign capital did not run to the USA.



NOTE: Posts here are the lite version, more depth on each subject can be found via our RTT Plus membership.

Changes in the world is the source of all market moves, to catch and ride the change we believe a combination of Gann Angles, Cycles, Wyckoff and Ney logic is the best way to ride the change, after all these methods have been used successfully for 70+ years. This post is a delayed and small sample of what is avaliable to members. Sign up to enjoy the full service.

NOTE: does allow users to load objects and text on charts, however some annotations are by a free third party image tool named

Investing Quote...

.."Don’t trust your own opinion and back your judgment until the action of the market itself confirms your opinion"..

Jesse Livermore Trading Rule

.."If past history was all there was to the game, the richest people would be librarians"..

Warren Buffett

.."If you tell the truth, you don't have to remember anything."...

Mark Twain 

.."Until an hour before the Devil fell, God thought him beautiful in Heaven"..

Arthur Miller, “The Crucible”
 [Contrarian Investing]

..“Don’t try to buy at the bottom and sell at the top. It can’t be done except by liars.”..

Bernard Baruch

© Copyright 2022 (or 'RTT')

Source URL:

Public Disclaimer