What a roller coaster of a week.  Monday, the market shot straight up;  Tuesday’s news of slowdown in China brought it back down.  Wednesday, rally on light volume; then today was a day of indecision: the market opened up, soared higher, sold way off on a dollar reversal, then rallied at the end of the session for a nearly flat finish.

What is interesting this week is what happened to the dollar.  The dollar can be tracked using the ETF “UUP”.  We’ve had a reversal in the dollar and, what looks like, an ensuing correction in precious metals and commodities. 

The following is a recap of recent picks from this site (which are all doing really well!!):

DZZ (Short Gold ETF):  On Oct 17 we said to watch for a rally in the dollar. The chart showed that the dollar was sitting right on support.  We recommended DZZ (short gold), DUG (short oil) or MWN (short mid cap stocks).  What Happened: DZZ has had a wonderful reversal rally week and looks poised to go higher.  The others are doing well too.  The DZZ chart also produced “buy” signals with a bullish 3/10 EMA cross.  It was trading around $8.35 when we recommended it, and has since rallied nearly 11%!!  What to do next:  Look to add to DZZ on the next pullback as it will likely go higher.

Home Depot (HD):  On Oct 19 With HD trading at $30.50, we said to grab it for a run to $33.  What Happened: A great trade is ensuing.  HD is currently trading at $31.81 and looks to go higher in the short term towards our price target.  What to do next:  Hold.

Sallie Mae Corporation (SLM).  We caught this stock at the bottom of a well defined price channel and said to grab it under $11.50 for a possible run to $13.  we said to put a stop loss order at $10.89 (meaning when the stock trades below $10.89, your internet broker will automatically sell all your shares).  What happened: The stock is hanging in there, consolidating, currently at $11.40.  A run to $13 could easily be in the cards.  What to do next:  Hold.

Three great trades this week!  We feel best about the DZZ trade though as the dollar will likely continue to rally in the short term, driving gold and silver down.

Good luck!