I’ve been surfing around and I have noticed that many are taking the long dollar trade. I could end up being wrong but I think long the dollar is a bad trade right now. If you look at UDN, it has been trending along the trendline since March. It is now close to the trendline which introduces a low risk long trade. I’m just curious why so many have conviction to bet on being right about a reversal/breakdown right here verses the trend continuing.
I added to my UDN position today at $27.27.
Just like the dollar has been drifting lower since March, LQD has been marching higher ever so slowly. Both of these are strong trends since March and to a certain extent I am betting that any pullback in the market is a buying opportunity until such time as these trends breakdown.
