The U.S. Dollar is making a nice move, as we have seen global risk appetite start to retreat this week. Clearly, as you can see on the daily chart of UUP below, the Dollar remains in a steep downtrend. However, a fierce countertrend move higher is entirely possible, and perhaps already materializing. Given how sentiment had become so negative about our treasured currency, UUP could run 5-10% higher from here, no problem. With that said, it will take a lot of work on the Dollar bulls’ part to reverse this potent overall downtrend. Even if that happens, I expect it to be a process with a lot of backing and filling.
Finally, it remains to be seen if a Dollar rally will crush all equities,or simply the commodity/high beta ones.
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Chess would this affect you holding any silver names through weekend?
I don’t hold any silver names. Haven’t for several weeks now.
Chess,
I was meaning, Would this in your opinion affect how silver would trade early next week? even giving the oversold conditions? i know there is another margin raise on monday, but are all the big sellers out? so would a short term pop in dollar adversly effect silver? and if you can, where in silver would you look to get back in, or what level.
Thanks always helpful
I will look at the miners over the weekend and give a more informed opinion then. At first glance, I like the miners better than the metals here.
Thanks chess