US Dollar Index Now in Uptrend


(click for a larger and clearer image)

The June contract traded above 7600 today. Despite what you may think of the USD long or short-term, you normally don’t want to fight the tape.

In the near-term the price looks to head higher. The chart above depicts what Victor Sperandeo calls a “123 Reversal” pattern, which is reliable.

Maybe the USD is the “evil of two lessers?”


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  • Manuelbravochico

    The longer term trend followers should start getting into long positions somewhere around here.

    I wonder if Vic Sparendeo thinks this could be a longer term bottom, in other words, where a trader can reasonably expect a 1000 points, on DX contract over 6 – 9 months.

  • Wow ! This is  interesting.
    Next- the bigger headache- when to plan the possible exit.

    Comments on CRB index anyone ? The ags / metals don’t seem to  weaken. 

  • Anonymous

    You can plan to trail the trade with an exiting sell stop order at a level
    that is both financially and emotionally rewarding.

  • Manuelbravochico

    Selling  defined risk premium can help alleviate drawdowns in times like this.
    I’m seeing some big red #’s ytd for most cta’s.

  • Anonymous

    If that mean selling option premia, I’d be very careful. Being short gamma
    in wild markets is a recipe for disaster. Maybe net credit spreads if

  • Anonymous

    Here are some good CTA numbers: