In this weekend’s video, we take a look at the S&P500 SPY and its relationship with the US dollar UUP. The SPY finally tagged the 137.20 level intraday which is where the 2011 highs are. The UUP is nearing the 200 day moving average where it should find some near term support or even a bounce. Since the market and the dollar are inversely correlated, a bounce in the dollar should have the market pullback.
If the elusive pullback does happen, we are looking at some setups in IBM, GS, and DIS for next week.
Hey, this video is for Friday, February 24th 2012. I wanted to give a few pullback names to possibly get into long with some call options next week.
First lets look at the SPY. You can see that we reached the 137.20 level intraday today. We pulled back slightly and the previous level on this was 137.18. Obviously we were expecting a pullback as I’ve talked about on the last video. I also talk about how we have to be patient and how I was positioning for this for the short side.
The Dollar and the Market:
Another thing that is interesting here is the UUP, the dollar.