Traders Cooperative

[Joe Stocks]

Dollar - Here is a comment from Keene Little at OptionInvestors.com from his commentary last night.

>>The dollar spiked lower this week and that makes for a good ending to its descending wedge pattern from June. It may push a little lower and give us a throw-under finish but at this point, with uber-bearish sentiment on the dollar and bullish divergence at new price lows, this one is ripe for a rally. There is an 80-week cycle for the dollar which shows a potential bottom during the week ending October 2nd (there's that early October period again). I've recommended a long play on UUP (the dollar ETF) but clearly I'm calling a bottom before any evidence of it. I just like this setup for a try on a long play. As with a short on the stock market, a long play on the dollar needs to be done with discipline in case it goes south (literally) on you, especially with the turn window later this month. We have a setup for a strong rally into next year for the dollar (remember, its strength is relative to other currencies and ours will be "less bad") so it's time to test it. <<