SP500 DAILY - Adjusted for US Dollar Investors - Has a pattern:

I find it interesting that the S&P500, when adjusted for the US Dollar, has shown such a remarkably consistent band of readings at +16% at peaks to -16% at troughs. The drop in the S&P500 together with the dollar over 63 days (1 quarter) appears to attract buyers and rallies of +16% make buyers hold back.

The combination of the USDollar rally together with the rise in the S&P500 has meant a much bigger gain for US Dollar investors to the tune of 35% over the past 3 years. In the past three decades, the spread does always come back together, which could be accomplished by the dollar falling relative to the S&P500. I'll publish additional charts to reveal this "long term" pattern. In 30 years of charts, only the 2009 decline was less severe for US Dollar investors. What does that mean? That US Dollar investors often buy late in the cycle and end of losing money on a drop in the Dollar (DXY) and a drop in the stock market.

I will formulate a specific trading "recommendation" at a time in the near future.

Tim 2:24PM EST 11/20/2014

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