Oct
21

Careful with the Dollar and MOO

UDN

UDN is right at resistance. The market looks strong this morning but be especially careful before crude inventory comes out at 10:30 ET. If the dollar does breakdown (and UDN breakout), the market will explode higher and Dow 10,000 will be very real. However, this is an action point and I would be a surprised that the dollar would break through support (and UDN resistance) without a longer fight. Because the market is so highly correlated with the dollar, it means except it to rocket higher if it does break support or expect a lot of chop as this resolves.

 

moo

 

Also, I had been looking to get long AG but I’m seeing a potential pipe top on MOO. Bulkowski’s pipe top and bottoms have been very reliable and I am going to watch MOO and how this resolves before jumping in to MOO or any of its components.

 

breakout

 

I’m waiting on crude inventories but it is encouraging that we’re already out of the overnight range.

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  • alberto3333
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  • Articles like this show exactly why we're doomed in the long run. Throwing good money after bad is not going to be a long term solution to the credit crisis.

    http://www.businessinsider.com/the-story-of-21-...
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