The Bottom Line: Consider Going Long with the Dollar in 2010

December 21, 2009

§  The dollar is looking better on a relative basis – see the US Dollar Index (USDX)
§  Euro is declining as “PIIGs” component of euro is experiencing credit perception issues (Portugual, Ireland, Italy and Greece)
§  60%:  Euro is about 60% of USDX
§  US Dollar Outlook:  Its technical features appear strong although long term its fundamental are weak due to the US deficit picture

Bottom Line:  Consider an investment in UUP, an ETF that is dollar bullish via futures contracts.