by Sam Collins 10/07/08
PowerShares U.S. Dollar Index Bullish (UUP) -- This Exchange-Traded Fund (ETF) is designed to replicate the performance of being long the U.S. Dollar against the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and the Swiss franc.
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From March to August, the dollar traded sideways against most currencies. But in early August, it picked up buyers and in one month broke into a bullish pattern.
Even though the financial crisis has its epicenter in the United States, the dollar is still the currency that the world runs to when there is trouble, so if you are an investor who believes that the dollar will remain strong you may want to own some shares of UUP.
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The opening looks to be higher but today is options expiration day, and anything could happen.
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Traders and longer-term investors should sell any new positions at the first opportunity and short ETFs on a temporary recovery in the market.
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