This chart shows a relationship that every trader who is serious with the business has to keep in mind. The dollar is king, A STRONG DOLLAR ends up WEAKENING EMERGING MARKETS . This causes a capital flow away from them into safer dollar assets.
Right now , my game plan for the foreseeable future is to look for a short with good risk reward in the EEM as a whole , or break it down into its constituents and look for specific shorts in its holdings.
This dollar strength will also affect commodities , Stocks tied to commodities , XLE , and a myriad of other assets
Exciting times.
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The draw down in the DXY has coincided with a rally in EEM.