I bought 1/4 of my total position in UUP at $22.75 on Friday, 1/08/2010.
As you may recall from previous posts, this investment seeks to track the price and yield performance, before fees and expenses, of the Deutsche Bank Long US Dollar Futures index. The index is comprised solely of long futures contracts. The futures contract is designed to replicate the performance of being long the US Dollar against the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc.
My reasoning is outlined in three previous posts:
I think the euro is up for a correction and countries like Greece are not helping the euro at all. If the US raises interest rates, this could be the end of the gold rally and the beginning of the rise of the USD.
A decade high for the $1216 on December 2 price of gold was established on Dec. 2, 2009. Mark that date down. You might not see a higher-high for gold until the Fed stops raising interest rates. A rise in interest rates will strengthen the USD.
As soon as Ben Bernanke gets reconfirmed as Fed head by the Senate, look for Obama to be having a little chat with Bernake to help the democrats with a raise the rates of return on American savings accounts.