We do not list the Rydex U.S. Dollar Funds in
this strategy (above) because they are double (2x) funds. This means
they will move up or down twice as much as the actual daily changes.
For those who are very aggressive traders, there is no reason why they
cannot be used, but remember that losses are also doubled, and it requires
strong discipline to stay with the strategy during the inevitable losing
trades.
Bullish & Bearish positions are based on Trend. Trend is determined by proprietary, non-discretionary trend indicators. The following analysis attempts to forecast what we can expect over the coming weeks and months. Analysis, by its very nature, is subjective. Buy and sell decisions are not based on this analysis, but on the current trend. Over time, trading trends is where profits are greatest. This strategy uses the ProFunds Rising U.S. Dollar Fund (RDPIX) for analysis. We trade the ProFunds Rising and Falling Dollar Funds.
U.S. Dollar
Chart Analysis
Last week we wrote:
"Our bullish position in the U.S. Dollar continues but the currency is stuck right in the middle of two strong resistance levels."
This week:
After two difficult weeks for the U.S. Dollar, the currency rallied this week to above the $26.20 resistance line. But the close on Friday was near the lower end of the week's trading range.
The dollar has been trying to overcome a weak Euro which has suffered from the crisis in Cyprus.
When the dollar, using the ProFunds Rising U.S. Dollar Fund (RDPIX) in this analysis, reached $26.20, it immediately pulled back and has remained between resistance for the last two weeks. It is now fractionally above resistance.
It will break out, one way or the other, in short order. Our expectation is to the upside.
We use the ProFunds Rising U.S. Dollar Fund (RDPIX) in this report for analysis.
This strategy is BULLISH and in the ProFunds Rising
U.S. Dollar Fund - RDPIX (or other bullish U.S. Dollar fund). The Powershares U.S. Dollar ETF (NYSE: UUP) can also be used.
ProFunds Rising U.S. Dollar
Fund (RDPIX)
Weekly Chart |
BULLISH:
