Welcome back from the weekend, everybody. We've got some new calls and updated calls on a handful of the market's industries today .... the ones we ended up not being able to get done last week. The first thing we want to get done today, however, is a quick comparison of the stock market and the U.S. dollar. What's the Dollar Going to Do to Stocks? First things first. I have to give most of the credit regarding what you're about to read about the stock market and the dollar to John Monroe, who once again got me thinking about some things I hadn't yet thought about in his Elite Opportunity newsletter from this afternoon. I'll also let you know while it may seem like I'm giving a lot of his commentary away for free, trust me when I say I'm not. I'm just giving you a taste. The bulk of it (and the really actionable stuff) is still just reserved for full EO members, who are being walked through a process leading up to a likely trade. Still, even a little taste of what John's offering has value. In today's Elite Opportunity newsletter he wrote: "As it stands right now, the dollar continues to find strength around our previously suggested support level, so it's going to be extremely important to keep an eye there, because assuming it can find its way back to this month's high after sharply selling off on Yellen's prolonged efforts to raise rates, there still exists the possibility of even higher highs for the dollar. We're really not going to know until the dollar can actually achieve what we believe will likely be a very key retracement level back to the upside.... ... It will be at that point the dollar's forward trading levels will likely give us an indication of what stocks will want to do, because if you go all the way back to 2008, the two previous parabolic rises in the dollar were a precursor bottom for equities. Meaning, it was at the point when the dollar had completely topped out on a long-term basis that stocks found a base and moved higher. With that being said, assuming the dollar resumes its longer-term trend higher, it's likely to spell trouble for stocks on a near-term basis. Conversely, should the dollar break down around either of these two levels mentioned above on the PowerShares DB US Dollar Bullish ETF (UUP), we could see an extremely surprising rally in stocks." Now, what I didn't give you were the specifics and the charts John included with his comments, which would make his calls actionable for UUP as well as the broad market. You get the idea though - there are a lot of factors coming to a head now, and they're driving the greenback as well as the stock market itself. Even bonds and yields have somewhat disconnected themselves from the normal connection they have with equities and the U.S. dollar right now, so I think John's really on target here with his current analysis. In fact, I agree with John that the dollar may be THE big thing to watch regarding stocks at this time. I wish I could give you what John's giving Elite Opportunity members, as it's valuable insight I know investors aren't getting anywhere else. His analysis requires some technical tools I don't have access to, and even if I had access to them, HE'S the guy who's been using them for years. HE'S the guy with the experience you want leading you through these uncharted waters now that the U.S. dollar has gone haywire. Bottom line? If the greenback's recent rally has you intimidated and unsure of what it means you should do with your stock portfolio, now's the perfect time to tap into the EO's collective brainpower. Here's how to do so, or cut and paste this link: https://www.smallcapnetwork.com/pages/SCNEO/v1/ . There's even a 30-day money-back guarantee, so you can try before you buy. Two More Industries We Like Just as a refresher, we last looked at some trade-worthy technical breakouts back on March 17th, naming the Dow Jones Clothing and Accessories Index (DJUSCF) and the Dow Jones Airline Index (DJUSAR) as two industries with most of its stocks in breakout mode at the time. So far, no complaints, even if we've not made rip-roaring gains from either. You may recall the last time we looked at the Dow Jones Airline Index how much of its potential was predicated on a break above a ceiling at 264. Well, it happened later that week. Unfortunately, that move was undone the next week. We still like the way the bulls are holding the line though, keeping the index within reach of another break above that major resistance level. As for the Dow Jones Clothing and Accessories Index, it was valued at 354 then, and was priced at 363 today... a 2.5% increase, which is pretty good considering the overall market is only up about 0.5% since then. More important to us, though, is how the chart of DJUSCF continues to work its way toward an explosive breakout above the big ceiling at 366 (and then another one at 370). So what are the new industry calls we're making? One of them is a bullish call on REITS via the Dow Jones Diversified REITs Index (DJUSDT), and the other is a bullish call on heavy construction stocks, using the Dow Jones Heavy Construction Index (DJUSHV) as our proxy. If the Dow Jones Diversified REITs Index seems a little familiar, it should. We mentally stepped into it back on January 7th, and mentally put a floor in place for these names by January 29th, after they'd gained about 3.0%. It wasn't a huge gain, but that was never the point. The point in owning them then was the same reason we want them again now - they're something of an anti-market trade. With no real clarity on what's in store for the near-term equity market, we'll hedge ourselves with some real estate. It doesn't hurt any that DJUSDT has just bounced up and off of a major rising floor and has room to keep running. Same deal as last time - once the index hits that upper edge of the bullish channel, it's time to play defense and/or take profits. As for the heavy construction industry, while I understand many of these names rely on the oil and gas industry to spur revenue, I never saw what merited a 35% pullback from the highs seen in the middle of last year. And, let's not forget many of these names have nothing to do with the oil and gas business; they just build buildings and infrastructure. Whatever the case, investors appear to be starting to correct their mistake now, with the Dow Jones Heavy Construction Index breaking above an intermediate-term resistance line. James Brumley had some interesting data explaining why we should all probably be betting on heavy construction names rather than betting against them. Yes, we still like the Dow Jones Aerospace Index (DJUSAS), the Dow Jones Electronic and Electrical Index (DJUSEE), and the Dow Jones Homebuilding Index (DJUSHB), all of which are higher than our last look at them from March 17th. We just didn't have time or room to look at them today. We'll revisit them in the near future though. For today, we just wanted to put heavy construction and REITS on your radar. Still Stuck in the Middle This'll be quick, as there's not a lot to say. Even with today's big 1.22% jump, the S&P 500 is still just trapped in a sideways range. The upper edge of that range is 2118, while the lower edge it 2040. Both are the same boundaries as before. The big red flag for me today is the fact that the volume behind today's action was minimal. Given the size of the gain, one would have expected more participation in it. In other words, today's gain may not reflect the majority opinion. On the flipside, it's not as if the S&P 500's big floor at 2040 is broken either. I think John Monroe summed it up best in today's Elite Opportunity newsletter by saying: "We definitely continue to hover around a very key potential pivot point right now, especially when you consider the dollar. There's some awfully savvy currency traders out there, so we're going to continue to eye the dollar for any further clues, as it relates to the equity markets. Stay tuned because it's our opinion right now we're much closer to a strong market defining move than we've seen in quite some time." I don't disagree about a major move in the making, and I don't disagree it's likely to be driven by the dollar. We'll talk about both when the time comes, though I'll also tell you right now that Elite Opportunity members will know about it first. That's just one of the advantages of being an EO member. Aside from deeper and timelier research, John's newsletter is delivered in the middle of the trading day whereas this one is sent after the close. Again, here's how to become an Elite Opportunity subscriber.