UNG problem at UUP

Divergence yesterday between PowerShares DB US Dollar Index Bullish and index that it tracks Dollar Index (DXY) as fund manager used up SEC registered shares. Similar to United States Natural Gas earlier this year, covered on Tainted Alpha. DB Commodity Services LLC filled  to the U.S. SEC to register 100,000,000 additional shares in order to meet investor demand. Reuters story:Deutsche Bank unit files for 100 mln new UUP shares. Also, more important large volume in call options, looks someone is looking to profit on short covering/squeeze.

Chart 1. UUP vs. DXY

UUP vs. DXY 05112009

Source: Bloomberg

This entry was posted on Friday, November 6th, 2009 at 6:24 am and is filed under Markets. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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