Your Road Map for Trading the Dollar and Gold This Week

Trading the dollar is getting easier… About three weeks ago, we started writing about the coming rally in the U.S. dollar. First, Jeff Clark noticed how the dollar had suffered a huge decline… but was in the midst of a bullish chart pattern he likes to trade from the long side. Then, I noted how the trading crowd had pushed speculative "hate the dollar" bets to a multi-year extreme… the kind of extreme that means everyone is on one side of the boat. Since the market always hurts as many people as it can, extremes like this usually result in the crowd getting dumped at sea. Below, you'll find a three-month chart of a popular U.S. dollar fund UUP. This fund rises and falls along with the dollar. As we expected, the decline in the dollar has stalled, with UUP bumping off $22.20 per share. Continue reading the article.