UUP is an ETF that tracks the U.S. Dollar and it just this past week has triggered a fresh Long signal, only its second in the past 12 months. The first Buy, in early April, was short-lived as the Dollar has been mired in a year long bear market. What are the implications of a break in the Dollar decline?
This would be significant in a way that affects both the U.S. stock market and Gold & Silver markets. Since both are priced in U.S. Dollars, should the dollar be breaking out of a long term downtrend, there is a certain logic that implies that Gold and Stocks will soon be breaking down out of their own year long trends, only for these two, they are uptrends:
Over the past few weeks we have seen some high profile stocks in the short-term portfolio generated Sell Signals: AAPL, TSLA, BABA, and FB. These are market leaders all and of the four, only FB is even remotely close to reversing back Long.
The relationship between the strength in the U.S. Dollar and the weakness in some market leading stocks may be a tenuous one, or, it may be the first heads-up that a long awaited for reversal in the stock market is getting closer. With September now in the books without a major decline, it's October's turn to take center stage, it bringing its own baggage of past market upheavals. As they say in fencing, "En guarde."
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