The US dollar ran from 101 to 102.14 in a single session. Blake Young points out that a move that size can take a month or more.
Blake reads it as foreign capital rushing into the US. He’s already mapping where that money lands next.
The SPY whipsawed for more than three hours with single candles covering 25% to 50% of a full day’s range. It sat off just 0.1% when Blake recorded.
Blake found the real move in bonds. The 10-year hit its lowest level in years, then reversed to test Monday’s high on volume running above 100% of average.
Bonds and the dollar climbing together usually signal fresh capital arriving from overseas. Blake points to the euro sliding from 113.71 to 112.49 as more proof.
The dollar index just cleared every resistance level back to early 2025. Blake calls it one of the largest single candle days on the chart.
A dollar this strong has historically weighed on equities. Blake refuses to chase stocks in either direction.
He’s watching where nervous money hunts for income instead. Utilities have based for seven straight days. XLU pays a 3% dividend, with some individual utility stocks paying as high as 4%.
His other target is the dividend aristocrats. These S&P 500 companies have raised their dividends for at least 25 consecutive years.
Tonight’s video walks through the numbers on five of them:
- Hormel sits near its annual lows with a 5.87% dividend. Buying before October 13 captures a $0.29 payment. Weekly calls can add 1.5% to 2% a month, which makes this Blake’s favorite setup.
- ADP puts 30 days out pay 2.97% at the money. Assignment at 260 drops the cost basis near 253 ahead of a $1.70 dividend in December.
- Clorox fell from 109 to 79 and now yields 6.22%. Puts 15 days out pay 2.5% at 80. Blake won’t chase it while it keeps printing new lows.
- Amcor has held a solid base since September 14 and pays 6.18%. Selling monthly calls against the stock adds roughly 1% a month.
- PepsiCo pays 4.71% and offers about 2.5% for out of the money puts. Blake wants to see earnings first. Assignment would bring the cost basis down to about 119.
The VIX touched 17 today before fading to 16.5. Blake says a push back above 20 or 21 confirms a full flight to safety.
Until then, he’s lining up income trades and waiting on timing.
