Focus on the dollar index

The UUP is an ETF that tracks the dollar index. It's not as good as the real thing, but it's an instrument that most people can access. It got slammed for 6 cents so far today which is a lot for this ETF.

Taking a weekly or longer term perspective you can see that it has recently broken the uptrend and has gone into downtrend. The importance of this is that the market and most if not all commodities trade inverse to the dollar. This is the real cause of inflation. The dollar is getting demolished in order to finance the governments massive deficits. We all know that tax revenue is not plugging the hole in the spending gap, it's all debt financing.

This is no different from a penny stock company increasing it's authorized share count. It has a dilutive effect on the stock, and in this case it has a dilutive effect on the currency in the form of inflation.

I'm watching for the UUP to trade down into 21.50, not because I will be trading it, but because I think that could have an implication on when to get more aggressive on my shorts.

I only have two shorts right now and will probably be stopping out of one of them for less than a 2% loss. I have only 1 long right now in my swing trade account, and that move to 21.50 might signify the extent to which it can move to the upside.