Thursday, November 12, 2009

Power UUP

Looks like the Dollar is trying to make a comeback en force. Today's move bounced it off the 20MA and punched through the 50MA. Last time, it was stopped by the 100MA, which now stands at 23.12. Rising past this barrier and continuing on may spell doom for the local markets as long as the Dollar-Stock Market inverse relationship continues.

But if it does go though, I'll be interested in learning the reasons why. I've been hearing a lot of noise about a Dollar carry trade, which could make dollars 'worth' more. But that didn't really seem to work for Japan. Then again, we're not Japan.... read it how you like.

On a tip from the ChartAddict I bought some PLA today.

I had actually been watching this one as it was forming a nice Holy Grail setup, easing back down to the 144MA. But I didn't check back in time, and I got in at 4.00. Right now, I'm losing in the aftermarket, and I found out later that the jump was due to news that Playboy might get bought out. This was a rumor play, and I might have moved in too late. Support is at 3.82, so that's where I'll start to sweat. Otherwise, I'm going to see how this 'plays' out.

I dumped GSX at .48, and I might have to wait until December to see if it will bottom out. Trendline support is still only around .45 or so, but that's a healthy 7% for this penny pincher!

I also might include a short of the Dollar/Yen through the FXY etf. Don't know if I'll be able to short that etf until I try, and I'm still watching for a few more weeks as it approaches resistance. The wedge it's riding in now has such a low slope, it might not be until January or almost February before the Yen falls. Say, is there a Euro/Yen etf out there for us to buy?

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