POSITION: Long UUP
After writing about The Last Entitlement in this morning’s Early Look, I am getting a lot of questions surrounding what I am going to do with this US Dollar long position.
The questions are well-placed. To recap my current USD position’s history, we have positive P&L in the position effectively because we bought it at its most recent bottom (November 4th after the Midterms) in expectation of US fiscal reform. That said, most recently my patience with the Fiat Fools has once again run thin, and I now have this position on a very short leash.
While there is an immediate-term TRADE line of support at $77.80, that’s not good enough for me to stay in the game here trusting that professional politicians are going to do good by their word and cut spending. As long as the long-term TAIL and intermediate-term TREND lines of resistance in America’s currency credibility remain overhead, so will many globally interconnected consequences.
So tonight is the night – and watching the US Dollar lose its early morning gains here reminds me that the entire global currency market is betting that the President of the United States panders to the political wind of easy moneys and US Dollar Debauchery.
It wouldn’t be a new strategy – neither would my selling this long position and turning around immediately and shorting it.
Keith R. McCullough
Chief Executive Officer