Four Charts of the Day: Weak-Dollar Stocks

By Roberto Pedone

PEWAUKEE, Wis. (TheStreet) -- There is no question that the stock market has been in bull mode for the past few months. July alone has produced the best stock market returns for that month since 1989, with the Dow rising 8.6%, the S&P 500 adding 7.4% and the Nasdaq registering a 7.8% gain. Those are some pretty remarkable numbers considering that they occurred during a time when the economy has been challenging, to say the least.

However, as in most bull markets, stocks tend to advance when the least amount of people are looking for upside. This occurs because well-seasoned market-players know that Wall Street is forward-looking, so traders take positions and drive up share prices before the fundamental data shows that a recovery is in place.

This remarkable run has produced some unbelievable gains in names such as Georgia Gulf(GGC Quote), Rino International(RINIO Quote) and Novavax(NVAX Quote). These are just a few of many stocks that have soared as large money managers bought into the markets feverishly to avoid missing the move and as bears were forced to cover short positions.

Despite the impressive gains across much of the US equity market, there is one place that has not been following the bullish uptrend: the U.S. dollar. The greenback slid to its lowest levels since mid-December earlier this week as investors sold out of the world's reserve currency in exchange for equities and hard asset plays. To put things into context, the last time the dollar was this low, investment bank Lehman Brothers was collapsing.