Thursday, May 19, 2011 10:05:59 PM
Does this IWM:UDN chart mean anything?
When the dollar goes down, stocks go up. Here is a chart showing the ratio of Russell 2000 vs inverse dollar. A higher value means stocks went up more than the dollar went down.
Does this chart mean anything? It seems to show a triangle or a slightly-rising wedge, suggesting that stocks will soon go up more than the dollar goes down, which seems very bullish if the dollar rally ends soon. I've been expecting stocks to go down in June, but this suggests that they will go up. Am I reading too much into this chart?
When the dollar goes down, stocks go up. Here is a chart showing the ratio of Russell 2000 vs inverse dollar. A higher value means stocks went up more than the dollar went down.
Does this chart mean anything? It seems to show a triangle or a slightly-rising wedge, suggesting that stocks will soon go up more than the dollar goes down, which seems very bullish if the dollar rally ends soon. I've been expecting stocks to go down in June, but this suggests that they will go up. Am I reading too much into this chart?
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