ETF CORNER

UUP : One level where the US dollar could bounce.

 

Working on the right shoulder.

From a long term perspective, the US Dollar Index (DXY) is in the process of forming the right shoulder (S1) of the inverted H&S bottom I drew in a previous post :

http://etfstocks.typepad.com/markets/2008/12/dollar-index-supercycle.html

The US dollar did pullback from the 90 level to the 80 level. As long as the (DXY) does not violate the 80 level I will still be a long term bull on the US Dollar loud and clear.

For those who don't agree, buy UDN on pullbacks.

For those who do agree,buy UUP on pullbacks.

Euro: Multi-month consolidation pattern.

The EUR/USD looks like it' is going to be stuck in this consolidation pattern for the next few weeks at least. I believe we resolve to the downside once we break from this triangle formation. I know that the dollar is flawed.... but the Euro is going to deteriorate much more than the US as Europe is in the beginning of the economic slump. Interest rates in Europe are still much too high at 2,5% !

Long Dollar ETF: UUP. Short Dollar ETF: UDN.

Double Long Euro : ULE.  Double Short Euro: EUO.