Clowns Versus Kings

Clowns seem to be the scariest things going these days. But King Dollar may be a bit more ominous and, along with Treasuries, one of the more legitimate fears The Fed is facing right now. 

A stronger Dollar may force The Fed's hand, as a de facto tightening of sorts. But, either way, the Dollar has clearly been on a tear of late. 

At the moment, though, the UUP (ETF for the Dollar) monthly chart, updated below, shows an initial pause at its major breakout level. Those light blue lines illustrates the massive consolidation channel the Dollar has been working through since early-2015. And you can plainly see the potential for an explosive move higher. 

Not so fast, though. As the weakness today may carry a bit more to shake out some of the recently-converted Dollar bulls. It will be interesting to see if the precious metals and miners can thrive with some Dollar weakness here, and may offer fuel for the next leg higher in gold, to boot. 

More in my recap after the bell.