PowerShares U.S. Dollar Index Bullish (UUP) — This Exchange-Traded Fund (ETF) is designed to replicate the performance of being long the U.S. dollar against the euro, Japanese yen, British pound, Canadian dollar, Swedish kroner and Swiss franc.
From March 2008 to August 2008, the dollar traded sideways against most currencies.
On Oct. 7, with UUP at $24.90, the Trade of the Day said, But in early August, it picked up buyers and in one month broke into a bullish pattern. Even though the financial crisis has its epicenter in the United States, the dollar is still the currency that the world runs to when there is trouble, so if you are an investor who believes that the dollar will remain strong you may want to own some shares of UUP.”
Then on March 4, the Trade of the Day said, “The stock rallied to just over $27, fell to the 200-day moving average at $24, and then worked its way back to the resistance line at $27 where it is now. A break through $27 would result in a strong buy signal with a target of $30 plus.”
Instead of breaking through at $27, UUP pulled back again to the 200-day moving average where the stochastic has issued a new buy signal.
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