If UUP is getting weaker, then the inverse, UDN, should be getting stronger. The time cycle on this chart is daily. In part One I said UUP was weak. To determine the STRENGTH in UDN (the short for the USD). Here they are, "Don's Top Ten Technicals": 1. The Ichimoku Cloud is reversing. 2. Prices are trading above the cloud. 3. Prices are trading above the thick red Ichimoku Cloud Conversion line. 4. The thick red conversion line is also rising. 5. The thick black line is the Ki jun-Sen baseline of the Ichimoku Cloud , which is rising and now above the cloud. 6. The indicator on the top of the page is RSI / Stochastic, and this is strong. 7. The top middle indicator is vortex and it is extremely strong (green over red). 8. The Top (bar-type) indicator measures the "phase energy" of the stock, and this is extremely strong. 9. The green fractal arrows are up. 10. Look to the far right on the chart, around $22.20. You will note a yellowish line on top (lips), with black dots below (teeth), and a blue line (jaw) below the black dots. Now, all three are rising, correct? This is where I ask you to use your imagination and envision these three items as the "widely separated jaws of a feeding alligator". This is a very positive indication because the alligator is FEEDING in the uptrend. UDN is RISING, and I believe it will continue to do so until the confluence of technicals tells me differently. As Mark Twain said: “Don't use a five-dollar word when a fifty-cent word will do.”. I guess that's why I use charts. I hope this has been helpful, entertaining, and informative. Yours for better trading, Don.
