This ETF Loves & Profits From U.S. Dollar Weakness, Says Joe Friday

The strength in the U.S. Dollar currency along with treasury bond yields (interest rates) has been relentless all year. And this has pressured stocks and added volatility to the markets.

With both King Dollar and interest rates easing, could this be bullish stocks and commodities (oil, gold, etc.)?

Let’s check in with Joe Friday for “The facts, Ma’am. Just the facts.”

Today’s chart illustrates the price movement of the inverse US Dollar. More specifically, it is the Bearish US Dollar ETF UDN on a “weekly” basis. As you can see, a weaker dollar has this bearish dollar etf flying higher.

UDN created higher lows and a wedge pattern at (1) before breaking out big-time at (2).

This breakout should create many opportunities across the equities, bonds and commodities spaces. And perhaps take a little stress out the markets. We’ll see.

(Click on image to enlarge)

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