RSSSpecial Update - Gold and the Dollar
By Jim Welsh | February 09, 2010 | 1:04 PM | 0 Comments
Dollar
Although the dollar has a bit more upside in the short term, taking something off the table now is a good idea. Longer term, I still feel that the dollar index will eventually run higher, potentially to 89.00. I may be getting too cute here, but a correction is coming. The wild card continues to be the developments from Greece, and how it is spreading to Portugal and Spain. If spreads continue to widen, this has the potential to become a big problem. My guess is that the EU and ECB will come up with a plan to stem the tide. Whether the markets believe the plan will be the $64 dollar question. No pun intended. This would include lightening up on (NYSE: UUP), which was bought at an average price of $22.40.
Gold
Lower the stop on (NYSE: GLD) from $107.94 to $104.50. Sell half of (NYSE: DZZ) now, and use $104.50 on GLD as stop for the other half of the position.
| 
|
