# What the Dollar is Saying About the Stock Market

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Hey, Ross here:

Let’s look at a chart that perfectly encapsulates the kind of market we’re in right now.

**Chart of the Day**

![](https://lh5.googleusercontent.com/cbn3eTZivjCh79npqZ-sNhE00M1aJNlXL8RTqggFGIxRItyWBnD2YsudrOjcv91zh77YPRzzhu9ymlX6lgoPlDXDlyejOlm9KBz12tLQaHA38W3LScWYiam6I_TClzzO8PGebCy4_DsUSvQiVY-A7cM)

This is the DXY – the U.S. Dollar Index.

And as you can see, it has largely been inversely correlated to the stock market this year.

When the markets were going up – it was going down. And when markets were going down – it was going up.

The DXY has been rising sharply since late July – right when the stock market peaked for the year.

It’s now very close to a resistance level.

If it fails to break past that level and starts falling again – that could signal the start of the next leg upward.

Until then – stay cautious.

**Insight of the Day**

**Good positioning happens before the market makes a big move – not after**

A quick word about good positioning in trading – it’s something that happens before the market makes a big move, not after.

That’s why even though the market is currently range-bound – I’m still recommending positions, although I am a lot more cautious.

And right now, one of my strategies is up nearly 20% – counting both wins and losses – since August.

![](https://lh6.googleusercontent.com/Pd6hguNjlDPY_VxvHn8xzJlocrcl8-uDyg1DClHMAoRMwDd5WnCVXAN9b5xr6epNUv5TZpsBa_7JL80XW5c-wR_N80a-HCIKRRhqxUEcXOKYykBRMwvabWWAFMjRUW6ggryQoNcM2DJP3V_8xTK9zQ0)

_Remember – it’s all about the win/loss ratio (how much you win vs how much you lose)_

It’s a strategy based on one of the most trusted chart patterns I’ve ever seen – and thrives during pullback periods.

So, if a nearly 20% return in the middle of a pullback sounds good to you…

**[All you have to do is click here to find out more about this strategy.](https://webinar.tradersagency.com/fire-trader/?tambid=18238)**

Embrace the surge,

![](https://stocksurgedaily.com/wp-content/uploads/2023/05/image.png)

Ross Givens  
Editor, **_Stock Surge Daily_**