notice how UUP comes back to fill its gap...now lets see if we close lower

thats were the volume came in yesterday...

what i ve noticed , like today u had a gap up in uup...usually the dollar comes down to fill the gap..and markets retrace...today it was obvious..as FAZ was weak and usually leads up or down...if your holding overnite this may give u a tip off if to sell and rebuy or hold..IMHO

a tech trader is suggestion one more SPIKE down in the dollar ..spike UP in gold

and then a reversal...that would make it interesting...besides the Eur and Cad ..the Aud plays an important role...

besides EUR & CAD...the AUDUSD works for very short term trading.  should the EUR weaken and AUD vis a vis the dollar..weakness in the AUD usually confirms the move either up or down..i never short with strength in the AUD..usually..they tell u something at swings..i don't get volume in my currency crosses so i use say FXE for the Euro to watch the volume..DTO is also a good short term indicator..as XLE usually goes opposite its move..strength in XLE and its tough to have the markets go lower..

Regarding the market here in the US, our friends at

TrimTabs remind us that much of the recent strength

has been nothing more than short covering as the most

recent data from the NYSE shows. The stock

exchange reported that its short interest fell 3.4% in

late September to the lowest level since the end of

2007… and as everyone should remember, that was

the market’s high. Simply put the un-hedged shorts

have been “run in” and as they’ve been run in they’ve

taken share prices higher against themselves. Such is

the hard… and all too often, brief… life of the naked

short seller:

SMH"s were leading on the downside some weeks back...

SMH's look real weak..other than TYP, FAZ..the SRS will be one i m watching..if u look at 12.40 p.m today..the bonds, TLT, reversed..along with the currencey crosses..I m watching any weakness in Bonds to put some strength in the dollar.

or maybe were just in a new bull ... nah..

u can make a case that the dollar is testing its low on lighter volume on a weekly chart...should bonds be making a reversal that would give the dollar some strength..or , we could just be in a new bull market

we should now get a direction ..up or down

his prior letter said" if he is wrong then it would be a very rare pattern" i like my bull medium rare..

if any traders are using crosses to make trades ..like i do...lets chat...

if so, u might think they would strengthen the dollar...well..here comes a bounce in the dollar now...

on a weekly UUP tested 9/22/08, a swing low with 25% less volume, by two pennies..QQQQ went into its down week of 9/22/08 by a penny..that down week had 840 million ..last week we went into it with 468 million...FXE, the euro, is going into its swing with 80% lighter volume..but maybe were in a new bull market like the TV pundits are touting...watch the currencies..good trading