The US Dollar (measured through the DXY index) bounced from 74.484 on 11/23/07 to 76.413 on 12/05/07 on signs of resilience in the labor market and US economy. I believe it can extend those gains at least through next week and test 78, especially if we get 'good' unemployment data on Friday.
As such, an investor can buy UUP or short GLD and GDX for that trade. GLD topped at $83.63 on 11/08/07 and has hit two lower highs since, on 11/26 and 12/04- failed to recapture the $80 level. Support comes in at $76.50 and $75. GDX needs to hold $45.
Amaury
Contributing Author, ETF Updater
http://etfupdater.com
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