dollar index vs nifty monthly charts

M@yur

nifty monthly chart aprl 07 to date

correlate with dollar index chart posted below.this is regards to my previous post

1:01 pm (24 minutes ago)

Hitesh

GOOD ANALYSIS

APPRECIABLE.

BUT ONE INDICATOR IS NEVER A CRYSTAL BALL AND ACTING ALONE ON IT IS SUICIDAL.

DOLLAR INDEX WHEN FALLS WITH YEN'S STRENGTH AND WHEN IT FALLS WITH YEN WEAKNESS AGAINST DOLLAR AND VICE VERSA.

IN ALL 4 SITUATIONS,STOCKS REACTION IS DIFFERENT.

AND IN JULY 2008,DOLLAR INDEX WAS NEAR ITS ALL TIME LOWS AND NIFTY WAS 3900.

SO,ITS NOT A CRYSTAL BALL INDICATOR.ACTUALLY THERE'S NO CRYSTAL BALL.EVEN LIQUIDITY FLOWS ARE NOT GUARANTEED AND HIGHEST INFLOWS ARE CONTRARIAN INDICATORS AND ARE USED AS BEST SHORTING INDICATORS.

OCTOBER 2007 AND MAY 2009 ARE HIGHEST INFLOW INDICARTORS FOR WHOLE WORLD INCLUDING U.S STOCKS.

dollar index n nifty...any relation??

dollar index...check co relation with other assest classes..slump in the dollar index leads to flow of dollars to other assests classes.commodities and emerging markets benifit the most.relation between dollar index n emerging mkts is inveresely proportional.above is the dollar index from apr 07 todate

Jun 14 (6 days ago)

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M@yur

check the dollar index slump from apr 2007 to mid of apr 2008.emerging mkts were partying during this time as there was out flow of dollar.dollar index spiked up again in jan 08 where emerging mkts started their huge correction.

Jun 14 (6 days ago)

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M@yur

dollar index bottomed out between apr and july 08.check crude n gold charts during this period n u will see sharp spikes.
dollar rallied from july to oct 2008 where nifty saw oct lows.

Jun 14 (6 days ago)

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M@yur

in the same month there was a huge vertical slump in dollar index remember the vertical recovery in nifty after touching oct lows??from jan 09 dollar rallied and hit highs in apr 09.this was the time when ememgerin markets bottomed out.
from apr we saw a huge slump in the dollar index.which continues till date.

Jun 14 (6 days ago)

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M@yur

do u get where this excess liquity is coming from???its nothing to do with india,or congress n tat euphoria..its all abt the dollar index.dollar outflow has to be parked somewhere...wts better place ten a crazy market like india.bank of japan ceo on friday issues statments sayin tat japans faith in the dollar n us treasuries is unshakable tats y dollar rallied a bit on friday.keep a keen watch on this indicator called dollar index..its ur crystal ball to peep into the immediate future.