I bought 50 shares of UUP [PowerShares DB US Dollar Index Up] today. I bought it because of this blog post from Mish’s Global Economic Trend Analysis. From the post:
“The Dollar Sentiment Index for the Dollar Index reports just 3% bulls among traders, an extreme level only five times in the past 20 years, usually near an important low,” Prechter wrote on Aug. 5. “The last time we saw readings like this was March-July 2008, just before the dollar soared.” In other words, the “short the dollar” trade is overly crowded.
So that’s all the ‘research’ I put into this trade. I think it looks reasonable that the dollar is set for a rally, and at the very least the downside is probably limited at this level. I’ll be looking to make a few points on this and get out soon.
Here’s a chart where I made my buy (blue arrow):
Buy, UUP
I took another position in UYG this morning. It was in a low volume trading range at the time, and I’m expecting a break-out to the upside later today or tomorrow. I set a stop loss at 2.54 so this will have a little room to move, but won’t do too much damage if I’m wrong.
Buy, UYG
Bought 140 shares of FAS at 6.68, with a stop loss at 6.32.
I took a shot at FAS this morning, but I picked the wrong dip to buy. It dropped to about 6.00 a little while after I bought, and that would have been a good entry point. I entered at the wrong time, but I’m happy I set a stop-loss and stuck with it.
Realized a loss of $63.00, for a return of -6.69%.
Buy, FAS, Losses, Sell
*Note – This is an old trade that I’m posting for tracking purposes. Follow me on Twitter or StockTwits to keep track of my most recent trades, as close to real-time as possible.
Averaging down and adding to my UYG position. I continue to believe the Financials are oversold and the bad news is being overblown. I would buy more, but this is all I could buy with the remaining cash in my account.
Buy, UYG
Bought 200 shares of the FAS (FINANCIAL BULL 3X) at 4.9698 per share.
Buy, FAS
