This week saw a pretty big rally in stocks, specifically stocks with companies who do business overseas. Why? The USD has been on a tear since last year, but has recently faltered. Companies have been crushed this earnings season, blaming the EURO for missing the streets estimates. Many companies guided down Q2 earnings and their full year outlook. Money which was flowing into more domestic stocks since 2015, has started shifting back to globally focused stocks. A few that come to mind are TrendyProfit favorites such as $AAPL, $FB, $NKE, and $SBUX.
Going into next week I am looking at a key level of support. When the dollar approached its first horizontal support at .90 it did not even blink. This week it looks like we are approaching the second level of horizontal support and the 8 month support. The key level where these two cross are at .86. If this does not hold I look for a LONG fall down to .79. If this happens, look for more money to flow out of domestic centric focused stocks and into the global players.