Monday, January 3, 2011

Dollar is Still the Key For Me

A bit of a weird day for me, The midday silver sell off in sympathy with oil, was a head scratcher, and my AEM, GDX, and GG positions getting hit hard was no fun (GDXJ was OK though).  To top it off, I have a long dated put position on CMG, although still profitable was painful to watch, all with a chest cold.  Such is life in this business.

But, I do not know what imbalances or repositioning happened today, so I keep my cue on the dollar to guide me.  The dollar looks like it is still contra trending, and crawling up the underside of the 90 day LR band (chart one).  I will reduce position size if my line on chart two is violated.

On the plus side Natural gas is stirring, and Uranium is still beating to its own drum, although they look a little stretched.

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