Dollars, dollars and more dollars

As you may know, many currencies have risen during the past year relative to the U.S. Dollar. The bailouts of the financial system, in its many forms, coupled with other spending has created massive deficits. So, the market has assessed that as a decline in the U.S. Dollar. Against some currencies the decline has been quite steep. However, some have called for a bear market rally in the U.S. Dollar. Who knows? However, that leads me to the next new signal from the programs I created: Sell Short the Euro Currency.

The signal was effective for the futures market at 3:00 today. Its record was 8/8=100%. However, it should be noted that this is hardly credible. Some of the other signals I have shared with you have 60+ trades over a ten-year period. The futures symbol is ECH10. There is an ETF, EUO, but approach with caution. This is a leveraged fund, so a 1% change in the underlying currency becomes a 2% change in the ETF. This is not for the faint of heart. Buying this fund means you are betting that the Euro Currency will fall, and that the U.S. Dollar will rise (for a change). This could be a trade of short duration: the average length of days in the market was 16.5. This is an average; there were trades of one or two days. With trades of short duration there is the extra risk that the ETF performance will not mirror the performance in the futures market, because of the timing differences. This phenomenon was dealt with in a previous post entitled "Good News...Bad News...No News." Also, commentators have called for a Dollar Bear Market Rally. But bear market rallies, while vicious, are often short-lived. I am happy to say that the Euro opened at 1.4497 and is now at 1.4389. The dollar is actually rising.

Other Signals:
Cotton ETF(BAL) Entry Price: 36.75 Stop: 34.55 Last: 35.54
British Pound ETF:FXB Entry Price: 160.88 Stop: 161.12 Last: 162.79
Use caution in setting the stop on the Pound because this stop is pretty far away. While profits are likely, they aren't much with the current stop.

Cotton CTH10 Entry Price: 74.00 Stop: 70.80 Last: 72.41
British Pound BPH10 Entry Price: 161.54 Stop: 161.45 Last: 163.21
Short Gold GCG10 Entry Price: 1137.90 Stop: 1156.90 Last: 1143.00

Any views expressed herein are provided for information purposes only and should not be construed in any way as an offer, an endorsement, or inducement to invest.

The quotes and symbols used in the BLOG are believed to be reliable, but no guarantees are made with regard to the accuracy.