I went long the US dollar (UUP) today through a Call option ($22 strike expiring March 2010). This action was taken because of such bearish sentiment in the dollar along with the bearish sentiment in the market. My thesis is that as the market soften, investors and traders will turn to the safer asset which is the dollar. If I am right, I will be rewarded. If I am wrong, my leveraged trade should go heavily against me.
As for the market, Bob Prechter guessed in the video one (below) that the market should bottom somewhere around 2014 and 2016. This notion is similar to the one I have which I expressed in my article, Secular Bear: Understand the Market. I suggest you re-read this article.
1.) Bob Prechter: Bear Market Rally Is Over, Stocks Headed For New Lows
2.) Stocks, Commodities Topping; Dollar Set for Major Rally, Robert Prechter Says
3.) Jim Rogers with Lindsay Whipp of the Financial Times: Brief Dollar Rally
Art
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