Wednesday, January 12, 2011

UUP/dollar Update-Request

Someone has been pretty accurately in front of this trade as you'll see in the longer term charts.

 5 min UUP showing a slight positive divergence. I wouldn't consider this a reversal signal until it makes it to the 10-15 min charts.

 The 10 min chart shows ditribution right at the second attempt at resistance yesterday.

The longer term chart, 30 minutes shows how in front of the trade they are. Accumulation 12/29-12/31 then UUP moves up, then the negative divergence I showed above between 1/10 and 1/11 and today a decline. Right now, this chart is showing confirmation, despite the 5 min chart's positive divergence. Until that divergence makes it to these longer term charts, I would not act on it.

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