UUP & $USD Divergence?
On the other hand, the $USD, a index with a bit more trading history, seems to be at the lower range of an uptrend.
To put this into perspective, let me detail my past Thanksgiving. After a glorious feast centered around a enormous Turducken, I went out for a smoke with a few friends. A curious looking fellow who was clearly unemployed and missing a few screws came up to us and began a classic rant. “9/11 was an inside job, Planet X is coming, 2012, New World,” yadda yadda. Since I believe all that shit, it was embarrassing to hear it from a clearly deranged lowlife for whom I have little sympathy. The nail in the coffin was his insistence upon an economic collapse, and the fall of the dollar, which is more conspiratorial logic that I agree with. Then it hit me.
When the unemployed and homeless are shorting the dollar, beware. All logic screams that the dollar should fall. We’ve all seen the charts, we know the debt burden is incalculable, we know that the Fed can print money. But the dollar is rising. Scores of analysts with enough degrees to melt the steel core of the WTC say that the dollar must fall. It isn’t. Trade what you see, not what you believe.