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US Dollar Builds A Firm Foundation

|Includes: UDN, Invesco DB USD Bullish ETF (UUP)

The US dollar rallied on Thursday, but poor industrial output and industrial statistics came out on Friday and reversed its gains. It is now expected that GDP will be revised to show a contraction of 0.5-0.8% even using the government's inflated numbers. That has investors feeling that QE will continue to weaken the dollar. The dollar has put in a sextuple bottom at 79 on the US dollar index. This is a strong bottom that should hold barring a tragedy. Our position in UUP (rated "hold") should be a safe one.

Disclosure: I am long UUP.