Trend_T_Trader's  Instablog

Trend_T_Trader
Send Message
Definitely among the best and most reliable trading commentary you'll find anywhere at any price. http://www.facebook.com/pages/the-TREND-letter/105629939546060
My company:
theTRENDletter
  • U.S. Dollar At Likely Resistance 0 comments
    Jun 1, 2012 12:10 PM | about stocks: UUP

    May was the worst month for the DJIA in two years. Luckily our proprietary trading system had us triple-short the market since early May and subscribers booked a 20% gain on that position in addition to a 17% gain on our latest silver short.

    Now contrary to the overwhelming negative sentiment and news currently, we expect a bounce.

    There are technical reasons are primarily that both the DJIA and Goldman Sachs are down to their break-even points for the year thus a bounce from that crucial technical level is likely.

    The main reason we suspect a bounce is imminent is found in this chart of the U.S. dollar 2x bullish ETF, UUP, which we hold since buying it at the exact lows in early May of last year when the world was ultra-bearish on the dollar. We remain very bullish the U.S. dollar and expect it to go to multi-year highs, however it is unlikely that it'll cross the resistance shown on the chart without first some retracement of the recent big gains it has made. If that's the case, very likely equities will go the other way - higher.

    Despite the DJIA being down a whopping 220 points as we write, UUP is slightly in the red on the day which is a minor non-confirmation of the DJIA's drop in our estimation.

    (click to enlarge)

    Disclosure: I am long UUP.

    Stocks: UUP
Back To Trend_T_Trader's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.