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Have been making the case the past couple of days that the Dollar index was up against resistance and the patterns suggested it would take a breather (see post here) Now UUP is looking heavy. A decline in the Dollar should push stocks/commodities higher, which we are seeing this morning as well as pushing Government bond prices lower.
The day has a long, long way to go…. so far it looks likes equities will have a good day and Government bonds are getting hit pretty hard. Suggested to “score on defense” by purchasing the inverse bond ETF (TBF) yesterday, picking up almost 1% in a couple of hours in the new position. (see post here)
Interesting pre-market action today, in that, the long bond is down as much as the 500 index is up!