While stocks indices have been in the range, two of the best #ETFs so far that has shown some promising potentials are relative to the currency markets. As these would well be in line particularly with the current strength and tone of the #USD.
Aside form our DX #futures contracts, the UUP #PowerShares DB have started to gain momentum @25.00 level from a slide @24.00 which may continue as surrounding plays supporting a good rally on these markets is reflected. The consolidation period may have taken longer than usual, yet the market potential is clear as it defines the overall trajectory of the trend.
This goes the same way with the #iShares #Currency #Hedge MSCI Japan (HEWJ) as an arbitrary hedge for the USD strength that has now covered its full leg on the decline while a pivotal price recovery is already in place. The corresponding low on the #USDJPY @100.00 levels held equivalent to the #HEWJ @22.20 low and is currently trading above the 25.00 to this writing.
The correlation of these two instruments are well in line with the USD Index and USDJPY as an arbitrary play with and contrary to each other while waiting for stocks to make its break. Looking forward to the results of the #NFP figure would provide a good volatility reading on the closing activity.
Related Information:
CORRELATED INDICES, ETFs & CURRENCY SRATEGIES
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UUP - Tracking the USD Index which has established a new high for the week have given the ETF a good lift as its a double whammy from where both instruments came from.
ReplyDeleteTRACKING #USD INDEX INSYNC WITH #UUP
ReplyDeleteWhere CORRELATION VALUE is important
DXY - USD index have re-established a weekly high @98.57 breaking its previous high and on its way towards the 99.00 basis point handle. thus leading the UUP - Power Shares DB Bullish Fund slightly above the 25.47 nearing the target level @26.00 last seen January 29, 2016
Link: https://plus.google.com/110704191161245097602/posts/SdXm56StUpU
VALIDATING Market Call from Oct 7 for #UUP from 25.00 to 25.50 as of today Oct. 21, 2016.
ReplyDeleteChart Comparison:
Oct 07, 2016 @25.00
https://www.tradingview.com/x/ofW6ATGy/
Oct 21, 2016 @25.50
https://www.tradingview.com/x/VHXiVCi2/
Updated: Reference as of 10.31.16
ReplyDelete#TSOT - #USD Index #ETFs - Spread US Asia Europe
https://plus.google.com/110704191161245097602/posts/8x9E5qncjdy