By Gary Gordon of etfexpert.com
As I look at the price of crude oil at $80-plus per barrel, I admit I'm impressed. After all, the dollar gained about 10% in four months, and this dollar-priced commodity managed to hang tough.
Yet ever since Thursday's late announcement regarding an EU-IMF solution for Greece, the dollar has lost some of its mojo. In two sessions, Friday's and Monday's, the Powershares DB Dollar Bullish Fund (UUP) dropped 1.2%.
The last thing anyone should do is make a big deal about low-volume trading in a holiday-shortened week. In fact, we shouldn't draw any big conclusions about trading at the end of a quarter before earnings season and before the release of the jobs report.Nevertheless, I can't help but marvel at oil's ability to hold near $80 per barrel and gold's ability to hold near $1100 per ounce even as the dollar had been climbing higher and higher. It made me wonder what will happen when "dollar devaluation" returns? Perhaps the easiest way to answer that question is to look at what some of the top exchange-traded funds did Monday. How much did they gain? Are their respective correlations with the dollar weak so that a respective investment would do well when the dollar is falling? I will be the first to admit that a one-day boost in the "commodity complex" does not make for a clear uptrend. Nor does a two-day decline in PowerShares DB Dollar Bullish Fund mean the imminent decline of the recently mighty buck.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV