InTheMoneyStock...'s  Instablog
Send Message
InTheMoneyStocks.Com is a research and consulting company focused on mathematical proprietary techniques along with a key understanding of price, pattern and time. Through understanding geometry and other technical analysis methods, InTheMoneyStocks.Com prides itself on avoiding Wall Street hype... More
My company:
My blog:
Pro Traders Rant and Rave Blog
  • The Chart Behind Every Stock Market Move  0 comments
    Feb 19, 2014 11:41 AM | about stocks: SPY, FXY, UUP

    The most important chart in the stock market today is the chart of the U.S. Dollar verse the Japanese Yen (USD/JPY). Simply put, when this currency pair moves higher, so does the stock market. The opposite is true when the USD/JPY chart declines, the major stock market indexes in the United States, Europe, and Japan will decline.

    If you look at a chart of the USD/JPY you will see that the major stock indexes such as the S&P 500 Index (NYSEARCA:SPY) will follow this currency pair in virtual lockstep fashion. This lockstep relationship between the USD/JPY and the major stock market indexes has been intact since late 2012. While this highly correlated relationship, like many others will not last forever, it is worth watching closely at this time.

    Why does the major stock indexes follow the action in the USD/JPY chart so closely? The reason that the stock markets follow the USD/JPY chart is because the highly leveraged institutional money is betting on the USD/JPY going higher. In other words, the Japanese Yen will decline against the U.S. Dollar. When this happens the institutional money takes their leveraged profits and buys the major stock indexes in the United States and Europe. In fact, today the S&P 500 Index futures (ES-H4) was lower at the start of the trading session, but rebounded as soon as the USD/JPY chart surged higher. This chart of the USD/JPY should be on everyone's desktop at this time.

    Nicholas Santiago

    Stocks: SPY, FXY, UUP
Back To's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


  • Utility #stocks leading markets higher despite slightly higher yields in the 10-year U.S. #Treasury. $SO, $ED, $XLU all higher today.
    Apr 20, 2015
  • $YELP Forming Bearish Chart....
    Apr 13, 2015
  • $WMT bearish base, daily 200-day ma. Should drop to the $78.00 level & present a good entry level to buy the stock.
    Apr 10, 2015
More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.