Domistock Tools Used:
Assets charted: EEM
DomiStock’s Cross Asset Screen has a clear message about dollar and commodities and that is that the first is gaining strength while the last is losing their steam. The white line on the top of the Screen shows dollar’s performance in the short term being the stronger among the main global assets, behind only of that of the 10 Yr. US Treasuries. At the same time, oil’s performance (dark yellow line) is falling rapidly to the last place among the same global assets. Macro – technically this makes sense since dollar and commodities are often negatively correlated. And that’s exactly the case right now, as we can see at the bottom of the Screen, where the 100 – period correlation between them is -0,61.