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Top Stock #1: DB US Dollar Index Bullish Fund (UUP)
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See KeyThe Options Trader’s Guide to Technical Analysis
Foreign markets have been weak with emerging market indices and ETFs turning negative, while the U.S. dollar has turned bullish long term. There
has also been a significant development in the relationship between gold and the dollar. For several years, they have been in an inverse relationship,
but since late January, they have marched together. This may be an indication that international markets are in trouble (see 3
Emerging Market Bubbles Ready to Burst), and the flight to the stability of the dollar and gold explains this recent change.The DB US Dollar Index Bullish Fund (UUP), which seeks to track the
price and yield performance, before fees and expenses, of the Deutsche Bank Long US Dollar Futures Index, issued a major buy signal as the 50-day
moving average crossed the 200-day. Technicians refer to this as a “gold cross,” and it is a powerful bull market signal for the greenback and this
ETF.The long-term target for UUP is $25.50 to $26.
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