By InTheMoneyStocks.com on February 5th, 2010 12:21pm Eastern Time
Continued fears over sovereign debt, a possible bubble in China as they tighten lending and Europe's cratering economy have caused a major flight to safety in the U.S. Dollar, PowerShares DB US Dollar Index Bullish (NYSE:UUP). The Dollar Index is seeing a dramatic rise today again which is causing a continued collapse in oil and gold. The United States Oil Fund LP (ETF) (NYSE:USO) is in play now for a possible move higher between $34.50 and $33.75. There is major support in this range.
This could be the near term flush on oil and gold we have been looking for. Often times towards the end of a move up or down you get the final push. This is recognized by massive amounts of volume and a massive intra day move in price. Today could be near term capitulation on both oil and the gold SPDR Gold Trust (ETF) (NYSE:GLD). The dollar is getting extremely short term extended at these levels. Any pullback in the dollar should result in a bounce in commodities and commodity stocks. Be ready as this market is a short term swing traders heaven.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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