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Message: USD Dropping

USD Dropping

posted on Oct 17, 2008 07:19AM

As I'm not a currency expert, I tend to use more simple charting methods to find trends with gold and the dollar.

UUP (and UUD) are two etf's that track the USD. This makes it easy to compare gold and the usd by doing a comparison chart between UUP and GLD.

Currently the two have crossed in a way that has only happed for very brief times twice before in the past year which was followed by large reversals and upward swings for Gold.

Furthermore, technicals on UUP are all showing overbought conditions. I would, in fact, be buying UUD (dollar bear) except that it's thinly traded.

As Paulson's money is starting to work it's way into the system, libor rates are coming down and USD's will soon be much easier to get. IE, the supply will reduce the tight demand as everyone here is aware. Although I swing between pessimism and optimism 15 times each day, I'm starting to see what FB and Chris Pulplava were writing about this week and can now see a huge snap back, upward swing in both gold and gold stocks a well as the general market. At this moment, I'm extremely bullish.




Oct 17, 2008 07:29AM

Oct 17, 2008 08:06AM
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