The Mexican peso is the “blue-chip” emerging market currency. It’s long been a favorite for hedge fund carry trades—often paired with the yen—due to Mexico’s relatively high interest rates and liquid FX market.

Beyond its appeal to speculators, the peso has also served as a key risk-on currency—often leading and participating alongside a broad base of international equities and commodities.

Following the election of Claudia Sheinbaum in June of 2024, the Mexican Peso and Mexican stocks took a hit, turning into laggards on the international stage. 

It was clear for those paying attention that the market did not feel optimistic about President Sheinbaum’s economic leadership. 

But the tides are shifting. With a weakening dollar, the Mexican Peso is finding its footing, and Mexican equities are starting to improve in a...

From the Desk of Steve Strazza @Sstrazza and Ricardo Sarraf @nullcharts

When investing in the stock market, we always want to approach it as "a market of stocks."

Regardless of the environment, there are always stocks showing leadership and trending higher.

We may have to look harder to identify them depending on current market conditions. But there are always stocks that are going up.

The same can be said for weak stocks. Regardless of the environment, there are always stocks that are going down, too. 

We already have multiple scans focusing on stocks making all-time highs, such as Hall of Famers, Minor Leaguers, and the 2 to 100 Club.

We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics. 

Clearly, we spend a lot of time identifying and writing about leading stocks every week, via...

From the desk of Ricardo Sarraf, @nullcharts

The US dollar has been under increasing selling pressure all year, and just collapsed to its lowest level since April 2022.

When we look beneath the surface, the largest weightings in the DXY—namely the Euro, Yen, and Pound represent almost 83% of the index—and all three are threatening to break out of multi-year bases.

Analyzing the DXY in isolation is akin to evaluating the S&P 500 without considering market internals.

Due to the concentrated weightings in the index, DXY is always going to move in the opposite direction of these heavyweight currencies.

And right now, they are sending a very clear message about the dollar as they close in on textbook trend reversals.

The strength from these major currencies reinforces our...