The U.S. Dollar Index (USD) did not get the boost I thought it would after the FOMC meeting two weeks ago. Instead, the buck broke down from the pattern I showed you. It plunged towards its February low at about 88.50. And it looked like it was on the verge of a major breakdown.<\/p>\n
But that was a bluff.<\/p>\n
The currency market was simply enticing traders – who were already aggressively short the dollar – to increase their anti-dollar bets. It\u2019s like the rakers at the craps table telling you to bet the odds on every roll of the dice. They know the shooter will eventually roll a seven – usually after every other number has been rolled and everybody has bet on the odds.<\/p>\n
So, the dollar broke down from the bullish ascending triangle pattern I showed you two weeks ago. And everybody rushed in to short it.<\/p>\n
But the anti-dollar shooter looks ready to crap out. Look at this updated chart of the U.S. Dollar Index\u2026<\/p>\n
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Last week, the dollar tested the February low at 88.50 as support. Support held, and the buck bounced strongly off of it. The bounce was so strong that the index popped above its 50-day moving average (MA)<\/a> line. And the 9-day exponential moving average<\/a> line is still on the verge of crossing above the 50-day MA. That \u201cbullish cross\u201d should be enough to keep the dollar propped up for the next several weeks.<\/p>\n I still expect the U.S. Dollar Index to get as high as the 92 level before this short-term bounce is over.<\/p>\n The long-term view of the dollar still looks bearish to me. But, in the short term, too many traders are already too bearish on the buck. So, we\u2019re overdue for a strong bounce higher – if only to shake those bearish traders out of position.<\/p>\n A rising dollar is ultimately bearish on gold and gold stocks. So, look for the precious metals sector to trade lower in the short term.<\/p>\n But as the short-term rally in the buck runs its course, we ought to be able to buy gold and gold stocks at depressed prices.<\/p>\n Traders should stand ready for that.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n Today, some updates from Delta Report<\/em> subscribers on their recent results\u2026 <\/p>\n Hi Jeff, Thanks to Thursday\u2019s energy rally, I closed Q1 with a 75% return in my options account (including open positions). I\u2019m looking forward to another great performance in Q2\u2026 I think I\u2019m starting to get the hang of this.\n<\/p>\n Thank you for your great recommendations and market commentary. It amazes me how accurately you can predict market moves that we can benefit from each week. Happy Easter!\n<\/p>\n – James<\/strong><\/p>\n<\/blockquote>\n <\/p>\n Good results on EWZ. I bought April 20 $44 puts at $1.17 on 3\/23\/18 that you suggested on 3\/21\/18. I missed the late post on 3\/27\/18 to sell about $1.60 but was able to sell at $1.82 in the morning of 3\/28\/18.<\/p>\n – Doug<\/strong><\/p>\n<\/blockquote>\n And some thoughts on Friday’s educational piece\u2026<\/p>\n![](\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\")
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