by Clif Droke, Gold Strategies Review
Gold Seek
One of America’s most prominent hedge fund managers is betting the farm that China’s economic troubles are far from over. His bet centers around the U.S. dollar and by extension several Asian currencies. What happens to the dollar from here will determine whether this man’s epic trading positions pays off, and China suffers a major setback, and whether his worst case scenario for the global economic outlook is merely a mirage. If he’s right, the outcome of his bet will also affect the commodities market and perhaps even the equities market.
Below is a graph of the PowerShares U.S. Dollar Index Bullish Fund (UUP), an excellent proxy for the U.S. dollar index. UUP is useful since it allows us to see trading volume patterns, particularly since UUP is a favorite of institutional currency traders.