Two Ways To Play: Tough Day For Dead Presidents
Strengthen your portfolio in good times and bad.
The euro gained for a second consecutive day and the yen appreciated; apparently, traders thought yesterday's plunge, the largest since 1974, was too steep. At 2:21 EST, the dollar fell 1.9% to $1.2920 per euro and the yen rose 0.8% to ¥97.22 per dollar.
Stephen Malyon, co-head of currency strategy at Scotia Capital, said it was "the anticipation that lower rates from the Fed has improved the sentiment in the markets. "The dollar is already overbought," he noted.
For more on the trading environment, see Professor Smita Sadana's Minyan Mailbag: Maintaining the Gains.
From the Bull Pen: Does the crack in the dollar pave the way for gold to outperform? Will the gold miners gain faster than the yellow metal itself? Bulls can look to the Gold Miners ETF (GDX). One can consider a tight sell stop below $20.
From the Bear Cave: Is the US Dollar Index Bearish Fund (UDN) headed to its 50 DMA at a minimum? Bears can play this inverse ETF with a tight sell stop below $25.
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