Buying Some Dollars
- Posted by Greg Harmon
- on May 22nd, 2012
Last Friday we saw a possible Inverse Head and Shoulders in the US Dollar Index, $DX_F, in All About the Benjamin’s. From the chart below it is still yet to trigger and continues to be on watch. but if you only trade stocks the futures contract triggering does not help you. Or does it? The PowerShares DB US Dollar Index Bullish Fund, $UUP fits the Dollar Index Data pretty closely but
not exactly. There is no looming Inverse Head and Shoulders in this chart, but the bullishness is there. This ETF shows a break above 22.61, important just last week but also in October with only the peak at 22.85 in January between it and a new 2 year high. There is some minor resistance at 22.70 along the way as well. Digging a little deeper shows the Measured Move on the recent pullback is to 23.25. The move back higher happened on strong volume Tuesday. The Relative Strength Index (RSI) is bullish as well and the Moving Average Convergence Divergence (MACD) indicator is kinking back higher. Both support more upside. I want to wait to see the Futures break the neckline before entering long, but will have trades ready on the $UUP for that moment.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
Dragonfly Capital Updates
- Top Trade Ideas for the Week of May 20, 2013: The Rest Premium
- Top Trade Ideas for the Week of May 20, 2013: The Best
- SPY Trends and Influencers May 18, 2013
- Cleveland’s Best Linkfest!
- Macro Week in Review/Preview May 17, 2013
- Dragonfly Capital Views Performance Through May 2013 Expiry
- Premium Earnings 5-17-13
- Which Way is Up?
- Cicso Kid Was a Friend of Mine
- Premium Earnings 5-16-13