The dollar is the 'dog,' and stocks are the 'tail': Jim Iuorio joins Alpha Trader

This bonus episode of Alpha Trader features hosts Aaron Task and Stephen Alpher talking with Jim Iuorio, director at TJM Institutional Services and a CNBC contributor. The reversal in the dollar ([[USDOLLAR]], [[UUP]], [[UDN]]) bear market over the last few weeks has been notable. While some believe money has flowed into the greenback because stocks got shaky, Iuorio thinks the opposite. The dollar, he says, is the "dog," and most everything else is the "tail." When the dollar rose past 94.00, says Iuorio, it called into question a lot of the thinking behind the equity rally. It's since slipped, but Iuorio is keeping his eye on that level, and another solid break above would give him plenty of reasons to worry about another leg down in stocks. Getting a bit more granular into stocks, Iuorio is sympathetic to the value investor in what's been a period of massive underperformance, and he thinks some sort of comeback might be in order. A warning though: If things get rough for the FAANG names, things are probably going to be rough throughout equities. Value may not lose as much, but you can't eat relative performance. Looking post-election, Iuorio has cause for a bit more bullishness. Think about the morning of November 4. Despite a lot of chatter about vote counts, there's a high likelihood the uncertainly of the election outcome is going to vanish, and the Fed and its massively easy monetary policy will have gone nowhere. It sounds like the recipe for a rally.