Today the dollar ETF UUP tripped our stop at 24.662. We will be out, and watching for a reentry, because we think the party is not over in the dollar. There was actually a trading signal in UUP –the downgap across the horizontal support line by the BP, but this is a trend trade for us. We’re not looking for 5 or 6 points. We’re looking for 50 or sixty — which we are certain will come. The dollar is oversold, the euro is overbought. Incidentally, we shouldn’t have to alert readers to stops like this. When you see a “BP” on the chart you know that there is a 5% stop unless otherwise indicated, and you should compute it and enter it. The dollar will rise again.
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On a trend basis if you are very bullish on the dollar, does that mean you are very bearish on gold?