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U.S. Dollar Weakness Has ETF Investors Looking For More Downside (UUP, FXE, UDN, GLD, SGOL, IAU)
 

PowerShares US Dollar Bullish (NYSE:UUP) saw brisk options activity yesterday, with upside December 25 call buyers, looking for a potential rebound of the free-falling Dollar, but on the flipside we also saw protective order flow through buyers of puts and sellers of calls in the January 22 put/25 call risk reversals. So at this juncture, with (NYSE:UUP) trading at its lowest levels since May and down over 7% since its high of $25.84 on June 7th, options orderflow remains divisive. For those not willing to use options, PowerShares US Dollar Bearish (NYSE:UDN) is a potential way to play further downside in the U.S. Dollar.

 

 

  

 

 

Written By Scott Freeze From Street One Financial

Street One Financial LLC (S1F), is a full service shop specializing in ETF’s, equities, and options. S1F UTILIZES THE BROKER/DEALER SERVICES of Emerging Growth Equities (EGRO), a registered Broker Dealer and member of SIPC/FINRA. S1F specializes in agency ETF/ETP, equities, and options trade execution. On the ETF/ETP end, S1F works with the ETF issuers to understand their products thoroughly and how they can complement an investor’s portfolio. We assist portfolio managers in constructing their portfolios and identifying which ETF provides the best desired exposure by portfolio objective, fees and ease of trading. The ETF/ETP landscape is evolving rapidly and has diversified quickly beyond passive equity index ETFs. Now actively managed strategies, fundamental and quantitative ETFs, as well as those that offer exposure to Fixed Income, Commodities or even Volatility Indexes are available to investors. That said, understanding how specific products work and where they fit within portfolios and perhaps more importantly, “how to trade” these products, has become something of major importance to portfolio managers on all levels. At S1F, we assist portfolio managers in screening by true underlying liquidity, not “shown liquidity” or “perceived liquidity” as reflected by average daily trading volume. S1F then sources liquidity without identity or information slippage, through all available access points in the marketplace to minimize the market impact of the trade, delivering a lower total cost of trading to the portfolio manager. This allows the portfolio manager to, in essence, recapture basis points on each trade, and outperform their competitors over the course of the year, while maintaining a competitive edge over their peers. All trades executed by Street One are cleared and settled with NFS/Fidelity.

This communication is not intended to constitute any offer or solicitation to buy or sell securities. All trading and broker dealer services are through Emerging Growth Equities, Ltd (EGRO), Broker/Dealer and member of SIPC, FINRA (www.egequities.com). For more information, please contact us at: 877-782-8353