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Gold Customer
Joined: 4/10/2006 Posts: 954
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Why is the UUP UDN moving the direction which seems counter intuitive, if the Gov't is announcing it is going to spend/print more dollars.
Is it because all the currencies/nations plan to do the same?
Does not UUP follow the US Dollar as it rates against other currencies. I would expect it to continue downward, and Gold to continue Upward till we get some rate increases, and the govt reduces the deficit spending.
Not trying to start a debate about party politics just the effects of printing dollars. Historical market reactions.
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Registered User Joined: 12/31/2005 Posts: 266
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the dollars moving up?
take a look at the 10 last years of data.
stockcharts.com/c-sc/sc?s=$USD&p=M&yr=19&mn=10&dy=0&i=p70198669688&a=184704022&r=913
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Registered User Joined: 6/6/2005 Posts: 1,157
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Trying to understand trends and trend reversals in the market based on their supposed fundamental underpinings might make you crazy. :)
That said, the trend depends on your time frame. Clearly the longer term timeframe as indicated on that monthly chart is down. If you're drilling down further on smaller time frames you can see the recent movement to the upside. Whether or not it continues in the current direction is something I never try and predict.
All I know is that trends end, and new trends begin and six months later you will find out "why" and it won't sound anything like "the old trend ended and a new trend began". It will be part of a huge CNBC expose and economists will be bum-rushing the podium claiming they called it first.
Good luck all.
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Registered User Joined: 1/12/2009 Posts: 235
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Does anyone here even watch CNBC for investment advice? Or at least for entertainment?
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Registered User Joined: 12/31/2005 Posts: 266
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i turn the channel and just watch my charts, and read news on the internet. cnbc is more noise than anything else.
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Gold Customer
Joined: 4/10/2006 Posts: 954
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Forgive me, I was not very clear as usual. I felt UUP was going to test its upper bound in a clearly downward trend. I was just trying to look for any reason that it would succeed in breaking out of this down trend and "rationally" I can not make a case.
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Registered User Joined: 2/5/2006 Posts: 1,148
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nothing goes straight down. nothing even the us dollar.
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Registered User Joined: 7/1/2008 Posts: 889
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QUOTE (wwrightjuly4) Forgive me, I was not very clear as usual. I felt UUP was going to test its upper bound in a clearly downward trend. I was just trying to look for any reason that it would succeed in breaking out of this down trend and "rationally" I can not make a case.
you have to discount the obvious.
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Registered User Joined: 2/5/2006 Posts: 1,148
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the economy is seen as recovering(a better than expected jobs report), thus the fed will tighten money supply, making the dollar stronger.
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Registered User Joined: 9/9/2008 Posts: 8
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Although jobs are still being lost (which is bad) the velocity in which people are being laid off is slowing down (not as bad as expected).
As we lower our expectations and standards of what we consider to be positive news "Less Bad" becomes our new "Good" ....... and with these reduced expectations we can take a figure of 11,000 job losses for the month of November to mean that "things are improving" lol
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Gold Customer
Joined: 4/10/2006 Posts: 954
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Stopped out of UDN, Had been holding for about 3 months.
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Gold Customer
Joined: 4/10/2006 Posts: 954
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Well, this will probably be the turning point. Isn't that the way of it. Of coarse you set a stop for different reasons but I probably looked at the chart and decided if it breaks this price then it has changed character and I dont want to own any more, however it was in an area which obvious contention, and may bounce off as resistence.
well we will see, how much of a Dollar correction we get... but my luck it (UDN) will be upwards bound after kicking me out.
hiho
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