UDN ETF Loves And Profits From U.S. Dollar Weakness
Chris Kimble | Nov 12, 2022 11:28PM ET
The strength in the U.S. dollar currency along with treasury bond yields (interest rates) has been relentless all year. And this has pressured stocks and added volatility to the markets.
With both King Dollar and interest rates easing, could this be bullish stocks and commodities (oil, gold, etc.)?
Today’s chart illustrates the price movement of the inverse US Dollar. More specifically, it is the Bearish US Dollar ETF (UDN) on a “weekly” basis. As you can see, a weaker dollar has this bearish dollar etf flying higher.
UDN created higher lows and a wedge pattern at (1) before breaking out big-time at (2).
This breakout should create many opportunities across the equities, bonds and commodities spaces. And perhaps take a little stress out the markets. We’ll see. Stay tuned!
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