The UUP etf is an excellent analogy to the performance of the US Dollar since it is designed to replicate the performance of being long the US Dollar against the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc.
Chartist are guilty of seeing formation or patterns whenever they see a chart, however the formation of UUP is a book description of an uptrend, higher highs and lows and also volume increasing as the price goes up.
Economical issues apart, the dollar looks as if it’s going to resume the uptrend. If that comes to be true in the following days the better place to be is out of stocks or better yet short, since lately the stock market has been performing in an inverse relationship to the dollar.
I see weakness in energy stocks and consumer discretionary, later as the market goes down it will take materials stocks in the same direction.
For now I am out of stocks and looking forward to initiate some shorts.
The following stocks look interesting for the short side:
BBEP in the energy industry.
X and BW in the Materials group.
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- Erick Stern
- I am a civil engineer who likes charts, to me, speculating in the markets is both a hobby and a second profession and in my view the stock market is the most honest environment, since it is only your knowledge and preparation that matters. I live, and work in the construction industry, in the Dominican Republic. I read and answer all my mail so please feel free to write email@example.com Thanks, Erick