Wednesday, October 27, 2010

Is this all on the UUP and UUP?

So, I was looking at the blog and how often I have NOT been posting the past year. It's been very stressful with the combination of market ups and downs, President Obama and Congress officially cancelling my job, the Constellation Program, and the passing of my dear grandmother.

I come across a year-old chart of UUP that I posted, and almost thought that I was looking at today's chart! We're back to the same price levels, and the past year's data looked strikingly similar. I pulled up the current chart, marked up both for comparison, and posted below.

THEN:


I see a VERY DIFFERENT setup in today's action. Last year, there was a well-defined trendline that was eventually broken with supporting info from the indicators. There's a lot of up-pointing arrows on this first chart, showing positive divergence.

NOW:


Today's chart shows a year of much more wild behavior. While a similar trendline is respected, the other indicators aren't really giving any signals, all except volume. Volume is supporting hope for a bottoming out and reversal. We still need to penetrate (huh huh) that trendline, though. It's like a squished version of the first chart, more caffeinated and energetic. Another good sign is that price has gone above the 20-day MA. Let's see if it can cross the 50-MA.

Remember that this is an ETF that follows the Dollar Index. The whole world is in play here, and this is a simplified version of where the US is related to everyone else.

Another thing I noticed, Stockcharts.com has added price tags to the right side of their free charts in the past year. Sweet.

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