The one month average volume and volatility of the UUP dollar ETF has dropped to a long term low. The 3 month volatility is also at a long term low. Looks like it's building up a head of steam to run. With Spain on the verge, you would think an up move in the dollar is the most likely outcome of a reversion to normal dollar ETF volume and volatility.
Of course with Bubble Ben at the FED helm, this could be completely wrong. FED hyper-printing to help the ECB with Spain could be in the cards. Apparently the FEDs are going after Egan-Jones in retaliation for their recent downgrade of the dollar and to scare any other agencies with such thoughts before really cranking up the presses.
I guess all one can do is buy/sell the break out.
Low Volatility and Volume in US Dollar ETF
Started by
Douglas
, Apr 19 2012 02:31 PM
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