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It’s a tough market to figure out in the short term. But, at the end of the day, my gut says the equity market ultimately moves higher following the major push into new high territory. It’s just going to take a while to consolidate these gains before making additional advances. And with the election season in a complete state of uncertainty, we as investors are not encouraged to commit one way or the other to a particular outcome.

On the currency side, I’m very bullish on the U.S. dollar longer-term. The key is that we are not printing money right now, but other industrialized nations are, so that forces more capital flow into the greenback. And should the Federal Reserve increase interest rates, it would lead to a bigger movement in favor of the dollar.

With that in mind, I’m recommending a call debit spread on the PowerShares DB US Dollar Index Bullish ETF (NYSEARCA:UUP):

Using a spread order, buy to open the UUP Dec. 16th $25 call and sell to open the UUP Dec. 16th $26 call.

A debit spread is simply a way to lower the cost of buying options, as the option that you sell to open (short) helps offset the cost of the option that you buy to open. Therefore, this call debit spread is a way to lower the cost of buying bullish call options. Many brokers will require the use of margin and/or a set amount of reserved capital to execute a debit spread; contact your broker directly for specific requirements.

Ken Trester is editor of the popular Maximum Options program. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990.