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Still Bullish on Powershares U.S. Dollar (NYSE: UUP)

|Includes: PowerShares DB USD Bull ETF (UUP)

December 17, 2010

Shares of the ETF Powershares U.S. Dollar (NYSE: UUP) are acting like they are again ready to rally.

In Early November we wrote that the decline was far overdone and a relief rally was near. Since that analysis UUP rallied 7%.

After reaching highs near $23.50 a share UUP corrected to about $22.80 on heavy volume. This level appears to have held and UUP looks ready to rally again.

The prior high at $23.50 a share is the initial target. If this level is decisively surpassed, UUP has a good shot of reaching $24.24, the August highs, in coming weeks.

Putting a sell stop just below $22.75 a share, on a bullish trade offers an excellent opportunity for strong upside gains with very limited risk.

The ( ETF Timing Strategy does not currently hold a position in Powershares U.S. Dollar.