Two trades could suffer if the U.S. dollar keeps climbing from its 2021 peak

Two trades could suffer if the U.S. dollar keeps climbing from its 2021 peak

The could spell trouble for a few trades, market analysts say. The hit a one-year high versus rival currencies on Wednesday as investors embraced the possibility of the starting to wind down some of its by the end of the year. If the rally continues, some industrial stocks could be in trouble, Fundstrat Global Advisors' Mark Newton told CNBC's on Wednesday. "A lot of these industrials tend to get much of their revenue from overseas," the firm's global head of technical strategy said. For one, derives more than 60% of its sales from outside the United States, he said. "As the dollar has really surged ... industrials have been the weakest sector," falling more than 3.5% since the dollar's recent bottom on May 25, Newton said. "My own technical projection suggests the dollar gets up near 95.35 between now and the middle part of October, so that could cause industrials to have a little bit more selling pressure over the next three to five weeks," he said. The dollar index hovered above $94 in Wednesday afternoon trading. Caterpillar's stock could become attractive if that plays out, Newton said. Though it would be "a compelling buy" in the $173-$175 range, "it