Flow Friday: Oil-Dollar Mood Ring
60-second tell—crude up? Check DXY before pressing risk.
Today’s thought
Oil-dollar negative correlation is a mood ring.
When crude rips higher, the dollar usually softens as petro-revenues recycle into FX. If WTI pops yet DXY also climbs, liquidity is getting yanked even while energy costs rise; a painful squeeze for cyclicals and EM risk. Watch the correlation like a trader’s mood ring: green oil + green dollar turns portfolio heat amber.
Tiny action – If WTI is up more than 2% intraday, flip to DXY; if it’s also above yesterday’s high, tighten stops on any high-beta longs or cut size by 20%.
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