Watching this unfold is literally the same as it was back at the end of 2016, just from a “standing on your head” perspective. In fact, the chart of the $UUP looks remarkably similar.
Allow me to demonstrate.
On this recent push higher, the short position hasn’t budged at all, which could create a fast move if I’m correct about the turn.
To recap, I’ve been talking about a turn in the dollar happening. However, it’s obviously in the early stages of this turn. It’s a crowded position as it was last year. Yet, rather than take a Dollar long, I went Gold short…which has performed quite well thus far under minimal dollar upside. Should the $USD breakout, Gold prices will find floorboards quickly. This still goes down as the most memorable bull trap I’ve seen in years.
If you want an upside down chart of $GLD during the same time frame, gimme a holler.If you enjoy the content at iBankCoin, please follow us on Twitter