Based on my findings each day the Dollar Index (DXY) went higher the Nasdaq Index (NDX) sold off. My new strategy during this market is to watch the DXY daily trend and trade in the opposite direction of the trend with the NDX. Today the DXY rallied $.83 (.75%) and the NDX is down (-.67%) premarket. When the market opens I will watch to see if the DXY continues its overnight rally or if it becomes exhausted throughout the day. This is on a day when NFLX rallied 10% overnight due to a strong earnings report released after market hours yesterday. Today TSLA is expected to release their earnings report after the market closes as well.
Comment:
DXY has continued to rally it is now up 1.08 (.96%) to 1.13.08 and the NDX has fallen (-1.50%)!
Comment:
Today 10/20/2022 the DXY was down (-.32%) and the NDX rallied at the open of the market (+1.21%) even with a mixed TSLA earnings report release. This was also in conjunction with rising bond yields. Furthermore supporting my hypothesis with playing a trend in the NDX that opposes the trend of the DXY!
Comment:
Around 10 EST Patrick Timothy Harker who is the President of the Federal Reserve Bank of Philadelphia made his statement that he believes there is lack of progress towards inflation and that the Fed Funds rate should continue to be increased which caused the DXY and bond yields to grow stronger throughout the day causing the NDX to sell off!
Follow the DXY while trading for the day and you should do just fine. Just make sure you are watching areas of oversold conditions and overbought conditions for possible momentary pullbacks throughout the day!
Follow the DXY while trading for the day and you should do just fine. Just make sure you are watching areas of oversold conditions and overbought conditions for possible momentary pullbacks throughout the day!
Comment:
10/21/2022 After rumors of a Wall Street Journal report commenting on the Fed's beginning to talk about reducing Fed funds rate hikes the DXY sold off after an overnight rally from 113.94 to 112.80 during open market trading today the NDX rallied up to currently (.92%)! Watch the DXY and the NDX throughout the day to see if any validity to the Wall Street Journal reports surfaces further continuing the selloff in the DXY or if the DXY attempts to revisit overnight levels in the 113 area!