This Is Not Technical Strength

Another take down of gold and silver on marginal dollar strength is simply another opportunity for smart money to get on the right side of the trade.

The weekly dollar chart shows the futility of the rally being pushed hard by the media. A curl under a long-term neckline is not technical strength.

US Dollar Index ETF Weekly (UUP):


Today's dollar rally filled the 12/03 gap on a big contraction in volume. This suggests that the high volume downside gap is becoming resistance. This is not technical strength.

US Dollar Index ETF (UUP):


Nevertheless, media is doing it's "hard sale" to scare the weak hands while smart money repositions for another decline in the dollar and rally in gold. This is why you won't make a dime chasing headlines.