Karpel’s Corner: Weak dollar giving strength to commodity bulls; Energy heating up

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and  never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

The Dollar’s ($UUP) weakness has been a huge catalyst for the Commodity ($DBC) Bulls.

Now, the weakness in the Buck ($UUP) came after a denial at the 200 day moving average and the Euro ($FXE) gain some strength. These were all ingredients for everything commodity related to move to the upside.

If the strength in the commodities continues, this could put a stress on the consumer ($XRT). And, if there is weakness in this sector, the market could potentially see some volatility.
putting
Speaking of volatility, the tensions of the Middle East have Energy ($XLE) continued on the upside. This will impact the pump prices. So, again, another price spike that could impact the consumer and potentially impact overall consumer spending. I harp on this only because a consumer pullback could cool mid- and small caps ($RUT). Not a plus for upside continuation.

Well, that will be it for now. I am still recovering from the USA tie! Keep an eye on our Twitter feed for updates.

See you next time at the Corner!