Last week, the major stock market indexes came under pressure every time the U.S. Dollar Index rallied higher. Just look at the action in the market on May 13th, 2011. The major stock indexes declined sharply lower last Friday as the U.S. Dollar Index surged higher.
Leading commodity stocks seem to be affected the most by a stronger U.S. Dollar Index. Therefore, when the U.S. Dollar Index declines trader should watch stocks such as Cliffs Natural Resources Inc.(NYSE:CLF), Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) and United States Steel Corp.(NYSE:X). All of these stocks are positive this morning as the U.S. Dollar Index is lower on the trading session. Remember if the U.S. Dollar Index catches a bid higher these stocks will generally be the first stocks to sell off.
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