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The Day Herschel Lost His Cool (SLV, UUP)

Posted on July 22, 2021

There’s a money war shaping up globally that pits the dollar against a number of upstarts, physical, fiat and virtual.

So young…

The Yuan, Bitcoin and, of course, silver and gold are contending with the buck, in a battle from which only one will emerge as the world’s moolah hegemon.

And as the war develops, we’ll see flips and turns in the relationship between all of the above, some growing in value, others diminishing.

And it’s precisely there that we’re basing today’s trade.

Dollar/Silver

The U.S. Dollar and silver have a long volatile relationship that today offers us a great opportunity to cash in.

In order to understand the trade, let’s walk through a few charts of the iShares Silver Trust ETF (NYSE:SLV), a reliable proxy for COMEX silver.

We’ll then match that stock against the dollar, as represented by the Invesco US Dollar Index Bullish Fund (NYSE:UUP) and see how things shape up.

Here’s SLV –

Consider multiple units for a larger haul, if it strikes your fancy pants.

We’ll consider closing early in the event of a swift move lower for SLV.

Place you faith in the Al-mighty G-d of Israel, and like David HaMelech, you’ll never lack.

Many happy returns,

Matt McAbby

 

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