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Yes it does seem like a “laughable event to most investors” to discuss a rally in the Dollar. Yet from a “Power of the Pattern” perspective, the odds are around two-thirds that a rally in the Dollar could start from price point (1). If the Dollar does rally from here, the investments that would be under the most pressure would be Commodities and International stocks.
Game Plan….Buy UUP with a 1.5% stop. A dollar rally could really impact the Shanghai Flag (see post here) In the Shanghai post, it suggested that aggressive investors should pick up FXP. If this Dollar does rally, FXP would really pick up some good gains, over and above the gains we’ve made so far!