buying UUP

We've done well with currency speculations in this blog. We recommended UUP/DRR in Nov. '09 which in 6 months returned 16% and 59% respectively, then URR in June '10 which returned 23% in 2 months.

Today we go against virtually everyone, as usual, in buying UUP the ProShares Double-Long US dollar Index ETF. The standard caveats regarding levered instruments apply of course. No stop, as of yet.

For the next while we expect, generally speaking, to see markets and precious metals going down and the US dollar going up.

Those hoping to snag cheap silver as a long-term holding will wish to wait a few weeks and seek a price in the mid-low $20's. Aggressive speculators may try something in the mid-$30's, possibly as early as today and with an advanced understanding of the concept of tight stops and re-buying if need be. Those who bought recently in the $40's, especially the high-$40's, are completely reckless and extremely unlikely to ever make money via speculating. Readers of our paid service were warned stridently about an imminent silver crash late last week, at the exact top. The silver futures contact has had its biggest 3-day decline in 28 years, so please let's not pretend this is "a dip".

Below is an excellent chart of HAO (see last update, this blog) which we are pleased to share with you :



Will the current market and precious metal swoon affect HAO? Possibly, but all that really matters is the chart. It is a red flag that this stock did not rally late last year when most Venture Exchange stocks were on fire, but currently HAO is drilling and hopefully promoting as their situation is compelling. They might even find something significant, though the chances of that, as with all such ventures, are near-zero. Perhaps precious metals will double again in the next few weeks, taking related stocks up with them, though the chances of that are less than near-zero. Allocate accordingly as always, or just keep an eye on it for fun. We're in with a large position.



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