This is a chart of the US Dollar Bullish ETF (UUP). Its the ETF you put your money into when you expect the USD to rise. Have a look at the chart. I figured the important bits didn't need circling as they're pretty obvious....
The following was posted late last night by Bill Cara:
While the dollar was relatively docile (DXY -0.002%), the US dollar ETF symbol UUP was momentarily halted due to excess bullish demand. Yesterday hundreds of thousands of upside calls were purchased, perhaps by somebody in the know. Normal call volume over the past 50 days is 27,900; yesterday 403,000 calls traded.
UUP shot up over +3% at one point today, even as the dollar was actually down at the time. Do you think someone might have orchestrated this squeeze?
Moral of the story -- pay attention to unusual option activity, especially when the activity is in out-of-the-money options (cheaper price, higher leverage) with no accompanying press release as a catalyst.
Now personally, I haven't got a clue whats going on, nor how it will affect gold. I simply post the information so your all aware that somethings going on. Seems there's plenty of smart money moving into a bullish USD position, but for what reason I don't know. Maybe because its going to move up, maybe because they want people to think its going to move up...
As for the resultant effect on gold, again, who knows? Traditionally it has a fairly strong negative correlation to the USD. Doesn't necassarily mean it will this time though. Maybe gold holds its own if the USD rises strongly, maybe it holds some of it own. Maybe it tanks? Either way theres a good chance $A gold will do well.
All I'm saying is be on the lookout for a strong, powerful move in a particular direction. There's a good chance that it could be the start of a sustained move that the smart money knows about.
