On Thursday, chatter on Wall Street had everything to do with the pullback in the dollar and whether the recent strength was starting to abate.
Considering energy and materials had been the top two sectors over the past two quarters when stocks rallied, the dollar could make or break this market.
That’s because a stronger dollar makes commodities more expensive to holders of other currencies, which in turn drags down demand. If commodities and commodity related stocks in the energy and materials sectors sell-off due to dollar strength, the entire S&P could go with it.
And that leads to the multi-billion dollar question – what’s next for the dollar?
For insights we turned to one of the most widely followed and celebrated commodities traders we know – Dennis Gartman of the Gartman Letter.
And Gartman tells us he expects the dollar to move higher – a lot higher.