Jump to navigation

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
Follow Futures          
       
more >>

We Asked Traders

Top things I learned about life while day trading millions

Sponsored Content

Trading

Equities.com launches unlimited trading via Tradier Brokerage, Transforming into a news & fintech portal

Featured Topics

more Commodities>>

Commodities

A Saudi-Iran oil war could break up OPEC
Advertisement
more Volatility>>

Volatility

Implied vs. Realized Volatility & the VIX
more Financials>>

Financials

Making drones work for you
more Financials>>

Financials

Perspective: S&P 500 short side off highs

U.S. dollar showing strength by default

By Anthony Lazzara

February 25, 2013 • Reprints

Uncertainty over this week’s March 1 deadline to avoid automatic U.S. spending cuts may temper any rally to new highs this week for the S&P 500, even with an impressive rebound all the way from below 1500 to 1525 this morning (MAR13 contract). Once hitting the key level of 1525, however, the market sold off 10 points very quickly, thus indicating to us a sort of nervousness in the bull camp. 1530 remains the key resistance, and we don’t see the market rallying higher than this level before any type of conclusion is found with the upcoming spending cut deadline. 1460 remains our key support level for the S&P 500.

Precious metals have started off the week on a positive note, with silver futures rebounding $.52, or +1.83%. Gold futures are up almost 1% to $1,585. To us this seems to be profit taking by the bears. One other bullish stimulus to precious metals could be the fundamental impact of the Bank of Japan’s ultra-dovish monetary policy.

We focus more on the U.S. Dollar Index. We have seen some big moves in the foreign currency markets recently. First of all, the British pound has gotten clobbered recently, trading from above 1.58 down to 1.51 just this month. The Canadian dollar has also taken a hit by bears this month, trading down from 1.00 to a recent low of 97.34 today. And of course, the Japanese yen is making any yen bull look foolish, as it keeps dropping, hitting a new low for the move at 1.0600 this morning.

Our fundamental view is that the U.S. dollar will continue to rally against its foreign currency peers, as the U.S. potentially winds down or diminishes its recent QE activity, while other central banks around the world either continue it for longer or actually start-up QE policies of their own. We call this the QE Cascade. We believe the U.S. Dollar Index will rally to its 2012 high of 84 and perhaps beyond that level. If this occurs, we believe key commodities such as gold and oil will drop with the U.S. dollar rally.

Click to enlarge.

About the Author

Anthony Lazzara, CEO of Newport Beach, Calif., commodities investment firm Lido Isle Advisors, spent 10 years as a trader and floor broker at the Chicago Board of Trade and Chicago Mercantile Exchange. Anthony has significant experience in the energy, fixed income, and equity futures markets. After being a long-time independent futures trader, Anthony saw a tremendous opportunity to educate investors on how to invest in professional traders. Anthony is now focused on his duty as CEO of Lido Isle Advisors.

Related Articles
NZD/JPY collapses as NZ Business Confidence hits lowest level in decade
Sentiment bruised by Tariff plans; Emerging markets tumble
US dollar drops after Powell stresses gradual approach to rates
Is EUR/USD Rolling Over Ahead of Powell?
Beating down the dollar
Previous
Gold positions cut by most since ’07 as sugar bears grow
Next
U.S. stocks decline amid concern over Italian election results
Related Terms
oil 6597dollar 4005forex 2901Pound 1354yen 1330Bank of Japan 1119fx 1080U.S. dollar index 31

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
images