U.S. Dollar Index Review: UUP, UDX
Eric De Groot | Sep 13, 2019 08:45AM ET
Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to long-term trends, it does not define them. The focus on short-term noise rather than trends, a source of confusion for the bagholders at major trend transitions.
The US Dollar Index's overall trend, revealed by trends of price, leverage, and time, are defined in the The Matrix
Dollar is falling again, largely because the Euro needed to rally. Draghi's speech said nothing coherent in terms of fixing the EU or Euro, but market action creates commentary, so a rally materialized after a sharp open lower. Please frame the dollar decline as another attempt to talk it down. They'll bring in the same old dollar bears and tell us how bearish the technicals look really bad; search previous reviews as I expect the old dollar bears will re-materialize despite worthless calls.
Subscribers, however, are smarter than the public. They see late cycle triple alignment in need of a reset, not a bear market. What will be even more impressive this time around is that the reset will be taking place under a near bullish setup. The dollar's most recent DI and DI2 are 58% and 18%. If these numbers rise as the dollar index resets, it shows an aggressive bullish energy build as the headline prepare the fools for lower prices. This game is all about what the invisible hand is doing, not the fools.
Dollar DI
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