March should be a good time for the markets

 

Look at the US Dollar Index overlaid with the short ETF for the S&P500. In other words, when the blue line goes up, that means stock market shorts are making money (along with rising dollars). But when blue line falls, that means the shorts are losing and people long stocks are the ones making money (with dollars falling):

The strong negative correlation between stocks and the Dollar has been in place since 2016, and we've seen similar relationships like this in other periods of market history. So this is not unprecedented at all. But it has definitely been really helpful for us the past few cycles. Here's a closer look at just the US Dollar. Those former support levels from Q3 of last year continue to come into play as resistance:

This recent rally in the Dollar came with weaker stocks, which is to be expected. February was also a really weak period seasonally, so none of this was a surprise. More importantly, the seasonal tailwinds for the stock market are back. If that resistance up there for the Dollar Index keeps greenbacks under pressure, then stocks could have a very positive next couple months.

The time is right. The catalyst is very clear. And sentiment is still incredibly pessimistic, so the higher probability outcome anyway is a continued sentiment unwind in favor of the bulls