Buy The US Dollar In May And Make Hay [PowerShares DB US Dollar Index Bullish]

dollarThe trade I’m going to tell you about today boasts a five-year track record of 100% success. Of course, that doesn’t guarantee future success. Something could go wrong. But odds are it will go very right. And there’s more than one way you can play it.

Here’s the trade: Go long the U.S. dollar.

You probably think the U.S. dollar is in big trouble. Longer term, I’d agree with you. But May is a very special month for the U.S. dollar. That’s because in every May over the past five years, the U.S. dollar has gained. The average gain is 3.7%, as you’ll see from this chart…

That’s a pretty good track record of success. Sure, the gains aren’t huge. (So far this month, it’s up about 0.67%.) But there are ways to leverage that.

But more importantly, I think the dollar has a shot at rallying well past the month of May. I’m cautiously bullish on the greenback because the U.S. economy is showing signs of life. Manufacturing is expanding. Capacity utilization is rising. Weekly hours worked is going up. This kind of news makes the Fed more likely to “taper” itsĀ 

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