Long The US Dollar, Because….. It’s Going Higher

I have no clue why the US Dollar $DX_F is going higher, nor do I really care, it could be one of ten thousands things.  What I do know, is that I see a classically bullish technical pattern staring me in the face and I’d like to make a couple bucks from it.  I took a 20% position in the $UUP at the close today.  That ETF doesn’t move too much, it’s not levered, and my risk is quite low as my stop is 25.28.  My price target is 26, I think we get there pretty quickly.

Am I going to make a killing on this trade, no.  But I’ll put a little capital to work here in a low risk way and get involved, stay sharp.  I’ve still got short positions in Banco Santander $STD and Retail $XRT which show me nice profits, I’m up almost 17% now on the STD trade.  I just don’t see the point in screwing around with this market on the long side right now.  Yes, there are a hand full of stocks which are breaking out, you all know the names, I mentioned many in my post last week on picking through the rubble.  But the leadership is still sooooo thin, and we are still seeing stocks like $CTRP do what they did today after looking very very bullish, just go and take a look at the action and tell me that this market is healthy.  In a healthy market that stock would have surged today, or at least held its ground.

So long story short, this isn’t my market, I’ll stick to the sidelines and play a few one off positions to make some coin.

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