BZ: Dollar Getting Crushed, Is This A Blow Out Bottom
PowerShares DB US Dollar Index Bu llish (NYSE: UUP) is getting killed, down 28 cents for a loss of over 1%. While this doesn't seem like much, considering it tracks a currency, this is a significant move.
The dollar continues to drop precipitously, and yet equities aren't moving at all. This has been the correlation for the past few months, and it has worked like clockwork. This begs the question, is the run in equities over?
The trend traders continue to hold and put on positions that work until they don't. This looks like it might be that case. If it is, investors could potentially see a whoosh down (that's the technical term) in the broader market averages, to the tune of at least 3%.
