U.S. Dollar (UUP) has crossed over to potential up trend last week. If the U.S. Dollar does confirm that it will be strong I’m expecting commodities to decline due to a strong dollar. The commodities that are currently positive that will be affected will be Precious Metals (DBP), Silver (SLV) and Platinum (PTM). Gold is not expected to have a direct impact.
Utilities (XLU) is up against upper resistance area of $34 since May 2011. If Markets continue showing weakness, Utilities are expected to continue higher.
BioFuel (FUE) been trending sideways since Dec. 2010 but with a slight up trend mode. However with crude oil (USO) in a down trend mode and if U.S. Dollar becomes stronger it will force crude oil lower, thus the demand for biofuels demand will decrease.
Inverse ETF’s continue to hold firmly without breaking down. Next week may give us a chance to add new positions.
Victor Santana
Stock-Hunters.com
"Building wealth one investment at a time."
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