by Kirk Spano
Market Watch
I don’t write with a lot of angst generally, but I think I will be today and for the next several columns. Today’s topic, the dollar, is the linchpin for upcoming columns as I believe a lot of people are getting the dollar all wrong again and, in turn, a lot of other things wrong, too.
In several columns at my investment letter, I have pointed out that we appear to be closing in on a significant stock-market dislocation. When the correction happens, it will coincide with dollar strength. I am not sure which will come first, the correction or the stronger dollar. My guess is the dollar anticipates the correction, prods the correction along and then accelerates to the upside as the correction completes. I am very bullish right now on the PowerShares DB U.S. Dollar Bullish ETF UUP, +0.16% and bearish on the iShares Russell 2000 ETF IWM, -0.81% which will once again suffer as buyers leave the stock market on volatility.