SPX vs. DXY for Jul 21 (At extremes)

2020年7月21日

The SPX and the U.S. dollar remain interdependent, with a negative 0.97 correlation for the lats 15 days of trade. This is a new extreme--and must be considered when trying to execute in the forex markets. As the FED continues it's devaluation of the U.S. dollar, the suits on Wall Street--and us retail traders-- will be the winners. The unfortunate reality is that goods are becoming more expensive for American families and that's the worst thing about this. We're entering an inflationary economic cycle with GDP (nominal) stalling, an election months away, and some of the biggest divergences seen since 2001 (as of yesterday). I've been very busy, but I will start to provide fundamental analysis on a regular basis more often, as a lot of you are inquiring great questions I would love to expand on.