Fundamentally the US dollar is weak. Technically, it is even more weak. As you probably know the dollar has been in a long-term down trend. Well, on the last leg up it formed a double top and has been crashing ever since.
PowerShares DB US Dollar Index Bearish (UDN) trades inverse to the dollar. It's a decent trading vehicle for short exposure as far as a stock goes. Keep in mind the chart below is the dollar short ETF. Click on it to enlarge it. There was recently a breakout gap to the downside. I feel very confident this ETF will test this resistance around 28.50s. I feel confident it will hit mid 29's probably 29.50 as well. So there is still some gain to be had if one was say looking for an addition to a diversified portfolio or swing trading account. I think there is still a good entry right now with a great re-load if there is any pull-back.
I will be putting up more stock plays over the future as the dollar continues to weaken.
full disclosure:no position in UDN
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