Capitalizing on Volatility: The Impact of USD Movement on Basic Materials Sector

day trading trading chronicles Apr 25, 2023
Leverage StockOdds Web Screener to Capitalize on Volatility: The Impact of USD Movement on Basic Materials Sector

On the morning of April 17th, the USD moved higher, impacting the basic materials sector, primarily metals and also chemicals. Currency fluctuations can be utilized as catalysts for basket trading, but choosing a direction can be challenging. If you're looking to remain neutral to the USD while benefiting from increased volatility and movement in the sector, StockOdds has a great solution. In this article, we'll explore how StockOdds' Web Screener can help you identify stocks in the basic materials sector that are more sensitive to the dollar, allowing you to capitalize on opportunities created by currency fluctuations.


Using the StockOdds Web Screener to Analyze Stocks' Relationship to the Sector ETF

StockOdds' Web Screener is a powerful tool that allows traders to quickly view a stock's relationship to its sector ETF. By inputting specific criteria, the Web Screener generates a list of stocks that meet your requirements, making it easier to identify potential trading opportunities.

The above symbols are just a small sample of the full output of symbols/pairs.


Curating a List of Stocks Sensitive to the Dollar

To create a list of stocks in the basic materials sector that are more sensitive to the dollar, you can use StockOdds' Web Screener, following these steps:

  1. Input the Open to Close (OC) Signal from the previous day (in this case, Friday) as your input.
  2. Set the output for the following day as Open to Close (OC).
  3. Export and review the list generated by the Web Screener to identify stocks that meet your criteria for increased sensitivity to the USD.

By following these steps, you can create a tailored list of stocks that are more likely to be impacted by fluctuations in the USD, allowing you to take advantage of increased volatility and movement within the sector.


Capitalizing on Opportunities with a Neutral USD Stance

Staying neutral to the USD involves segregating the output to symbols that are statistically likely to outperform the XLB ETF against symbols likely to underperform the XLB. This can be done by taking Odds and Avg Perf into account as output by the Web Screener. By curating a list of such stocks, you can capitalize on the opportunities created by the currency movement without choosing a specific direction.

This strategy allows you to remain flexible and responsive to market changes, while still making informed decisions based on quantitative statistics. By identifying stocks with greater sensitivity to the dollar, you can create a basket of trading opportunities that are more likely to be impacted by currency fluctuations, allowing you to potentially profit from the increased volatility.



The movement of the USD can create opportunities in the basic materials sector for traders who know how to capitalize on increased volatility. By using StockOdds' Web Screener, you can quickly identify stocks in the sector that are more sensitive to the dollar and likely to under/outperform its comparables, allowing you to take advantage of these opportunities while remaining neutral to the currency. This strategy can help you navigate the complex world of currency fluctuations, making it easier to profit from market movements without taking on unnecessary risks. Stay ahead of the game by leveraging StockOdds' powerful tools and make better informed decisions in today's fast-paced markets. 

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