The U.S. dollar is poised strengthen. This could be troubling for stocks and commodities.

The greenback is up by about 2.7 percent in the last three days. While 2.7 percent doesn't seem like a lot when compared to the recent swings in stocks, the move is truly a big one for the dollar.

Curiously the dollar bottomed out back in November just as volatility was increasing in the stock market. Since November, the greenback has stabilized, finding support at the 75 level in the U.S. Dollar Index ($USD).

Further strength in the dollar should pressure oil, maybe even enough to cause a breakdown from the top formation we wrote about earlier today. Oil is still priced and traded in dollars. A stronger dollar makes oil cheaper.

A stronger dollar could also make stocks cheaper, but not in a good way. Look for further upside in the greenback to be a catalyst for continued selling of stocks.

The Dow Jones Industrial Average ($INDU) is breaking down from its bear flag. A stronger dollar might be just the catalyst to send stocks back down to recent lows.

We've been bullish on Ryland Group (RYL) since the stock was trading at $25.18. RYL closed at $31.22 on Wednesday, five days after we first alerted readers to the triple bottom.

Check out today's video for more on RYL in our new Videos Section.

We've enjoyed this kind of amazing performance based on price patterns for years. It's time that you take advantage of it too!

Isn't it strange that the housing stocks were among the best performing during Tuesday's wild ride in the market? Wasn't it the housing sector that got us here in the first place?

The stock market is a forward looking mechanism, meaning that it discounts future expectations in today's prices. Judging by the recent price action in some housing stocks, the market thinks that things are going to get better. We're still skeptical, but willing to take a few bullish trades in the group.

One stock that we've been focusing on is Ryland (RYL) for the simple fact that it stopped going down about three months ago. It has since traced a triple bottom -- a bullish reversal pattern. The stock was up as much as 8 percent today, reaching up to $28.00. RYL closed the day with a gain of more than 4.5 percent. Amazing!

Looking forward, RYL would break its triple bottom with an advance past $29. It seems unlikely that this will happen anytime soon. In fact, we're inclined to take profits in this bullish trade. But we're watching the S&P Homebuilders Index ETF (XHB) closely for cues on how to manage the RYL trade.

The XHB has been trending lower in a very well defined bearish channel for months. Just look at that consistent pattern of lower highs and lower lows.

If the XHB breaks this pattern in the coming days, then we might look to let the bullish trade in RYL run a little further. Conversely, if the XHB rolls over at around $19, we'll be looking for RYL and other housing stocks to also rollover, prompting a quick run for the exit.

It's been a lousy week for the market, but a good one for readers of our blog. Take a look at some of the recent hits.

Predicting the breakdown in the Dow

Calling for a drop in Google (GOOG)

Looking for a bounce in Ryland (RYL)

Trade smart in this market, trade small positions, keep diversified, and keep checking in with TradingPricePatterns.com!

The broader market has been bearish since the beginning of the year. But shares of Ryland Group (RYL) refuse to go below $20. The stock is showing some subtle signs of relative strength.

RYL has rebounded from precisely $20 on three separate occasions over the last four months, tracing a triple bottom. The third rebound from $20 has taken RYL about $5 above $20, so a lot of the short-term bullish move has already occurred. But the stock could have a bit more upside in the short-term to horizontal resistance near $29. A breakout above resistance, in the intermediate-term, could see RYL rally up to the high $30's.