The dependence between the dollar index and the high risk assets

In the following chart you can see  the dependence between the dollar index, the crypto market cap, and the oldest weed stock ETF

Below them is the market cycles indicator which measures the overheating of the US economy.

We can see that when the DXY is in fundamentally downtrend condition, the economy is in good fundamental condition and the indicator is showing us buying opportunities marking green investment area, the crypto market is booming.

But when the economy is overheated and the DXY  is in fundamentally downtrend condition, the risky money goes to the weed market.

We can see that, when the DXY is going up, both weed stocks and the crypto markets are in downtrend.

Our company thinks that now we are in fundamentally downtrend condition for the dollar index. Stay in touch and we will explain our DXY opinion in our next posts.

We are exploring the weed stock markets from few month and we think that the next big cycle will be exact there.  We don’t expect huge correction in the dollar index, but the target area around 96$ is looking pretty accurate for the next support.

In this case we are expecting growth in the total weed stock market capitalisation with around  30 bln. USD  and to reach again the levels around  80 bln. total market capitalisation for the sector