Productive Dollar Reigns
An exceptionally strong productivity showing by the US
economy is bolstering the buck, taking dollar index futures
(
DXU0 |
Quote |
Chart |
News |
PowerRating) to
within shooting distance of contract highs. Dollar index futures are the leading
contract on the Momentum-5
List. The recent strong quarterly GDP outcome, coupled with Tuesday’s
17-year high in productivity–a development which should lead to more economic
growth–enhances the prospect of the dollar increasing in value vis-Ã -vis
competing currencies.
The Swiss franc’s
(
SFU0 |
Quote |
Chart |
News |
PowerRating) registration on the Implosion-5 List
also helped cement the argument for a higher dollar. The euro FX, the currency
most heavily weighted in the dollar index has a greater than 90% correlation
with the Swiss franc. A signal by Swiss futures is as good as a signal by the
euro FX and one of the strongest combined signals is a Momentum-5/Implosion-5
divergence in the dollar/euro. Euros and Swiss francs are more liquid than
dollar index futures, and are probably the trade that will allow you to
participate with the least slippage. One way to play any of these would have
been by using my Off
The Blocks method, a strategy that gets you in on futures contracts from our
proprietary futures momentum lists with limited risk.
Although they gapped lower on their opening one hour ago,
September Dow futures
(
DJU0 |
Quote |
Chart |
News |
PowerRating) showed higher highs and higher lows early on
the on the intraday chart. Once the futures cleared the high of the last hour
Monday, an Off
The Blocks entry was generated. Even though Dow futures are trading at the
expect resistance and profit-taking at the July 20, 10985 high.
Also from the Momentum-5
List, natural gas
(
NGU0 |
Quote |
Chart |
News |
PowerRating) is extending its winning streak to six,
rallying back to resistance near contract highs. Nat gas has rallied every day
since last week’s AGA weekly injection figures and declining volume in this
contract in recent days shows traders taking some profits off the table prior to
Wednesday’s report.