Sunday, February 28, 2021

#Dollar Index Review $UUP $UDX

US Dollar Review

Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to long-term trends, it does not define them. The focus on short-term noise rather than trends, a source of confusion for the majority of investors, leads to the creation of bagholders at major trend transitions.

The US Dollar Index's overall trend, revealed by trends of price, leverage, and time, are defined in The Matrix for subscribers.

Subscriber Comments

Hello Eric,

I am a relatively new subscriber and have watched your last two videos on Bitcoin and grains where you compared them both to the US Dollar. I have a few questions for you, firstly from my understanding we are waiting for a trend reversal on UUP to enter into a core long position, or is there anything else which must take place? How does the trend flip in the matrix? Will all three timeframes flip at the same time or will it be daily, weekly and monthly at different times? Also if a person was to take a position on this, would the best option be to buy UUP, use futures DXY or will a CFD based on DXY work?

I also see that you do not use futures data in the matrix; most of your data is based on ETFs and I understand that is due to contract roll overs etc thus not being able to get enough data on one instrument for a long enough period. When you get data for the Pro and Public index charts, is this data only from the underlying ETF or is it come from elsewhere? My thoughts, not knowing very much about how the matrix works is that if it was only ETF data then that may not be representative of the broader market.

Thank you,


I use futures data to calculate the primary trends of lean hogs, live cattle, and lumber, but the data source is not as fast or reliable as Continuous contracts exist for nearly all contracts but they pose problems with rollover, calculation, speed, reliability, and volume.

Pro and Public charts can be updated during the trading day because they come straight from exchange listed data feeds.

UUP is the proxy the computer follows for the Matrix. It can be applied to most other proxies for the Dollar Index. UUP has the least amount of leverage. It's a big reason why I included ETFs rather than futures contracts in the Matrix. Leverage carries extra risk.

This help video below discusses the phases of the EOT and how it looks in the Matrix. The Dollar Index needs to Flip, because only Nibbles against the primary trend are permitted if the primary trend is old. Old trends are labeled PTD1 or PTD2. The Dollar Index is not in the Primary Trend Decline phase.

It's highly unusual for all three time frames to flip at the same time. If they do, I will be buying like crazy. That's extremely rare and powerful. The last highly organized Flip was corn. It nearly produced a triple flip. Corn shot out of the gate like a Triple Crown winner afterwards.

A Flip in the dollar would be highly significant. It will be discussed for all subscribers if it happens. It will help if you understand it before my comments are posted.

I would watch as many of the help videos as possible. They help explain sections of the Matrix and are found by clicking the corresponding hyperlinks (Help*) found throughout the Trends tab.

Follow me on Twitter or Facebook for further discussion.


Market-driven money flow, trend, and intermarket analysis is provided by an Access Key.