Dollar Bullish and right!

Posted by Greg Weldon - Weldon's Money Monitor

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A brief comment from the extensive analysis contained in Weldon’s Money Monitor. Michael Campbell calls Greg Weldon – “The One Analyst other Analysts can’t Wait to Read.” Visit for a FREE Trial.


Ed Note: Greg Weldon was Bullish the US Dollar before the rally back on November 30th with this article “The Real next big move….” HERE.  Dollar higher yet again this morning. Gregs commentary below two Charts that I have posted showing the most recent Dollar action:

This Chart below posted by Money Talks


This Chart below posted by Money Talks



“in terms of our expectation for intensifying turbulence in global stock indexes on the back of rising interest rates and an appreciation in the greenback … we need only reference the overlay chart on display below in which we plot the path of the Bullish US Dollar ETF (UUP, black bars), against the UltraShort Eurocurrency ETF (EUO, dark blue line), and the Short Dow Industrial ETF (DOG, red line) … revealing that the DOG has, so far, failed to respond to the rally in the USD, in line with the tight positive correlation exhibited over the last year.

This Chart below from Weldon’s Money Monitor


Subsequently, we continue to monitor the US stock market for the right, bearish, technical set-up into which we can ‘sell short’. 

A move in the DOG above last week’s high of $53.43 would be a ‘trigger’. 

In the meantime, we remain bullish on the USD … 

… with a bearish focus on the Eurocurrency, the British Pound, the Eastern European currencies, and the Australian and Canadian Dollars. 

Indeed, it may become the most wonderful time of the year, for dollar bulls, and equity market bears, on the back of any potential (likely) push by the Fed towards becoming more aggressive in terms of draining excess liquidity from the banking system … 

… in line with a continued push towards intensifying shrinkage in Fed Bank Credit, and Commercial Bank holdings of cash.



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