ULE Euro Ultra Bull ETF Daily Chart Oversold Positive Divergence

The ULE is an ultra bullish play on the euro. In essence, the XEU, FXE and ULE charts are all the same. ULE is a thinly traded ETF so this requires extra caution. The FXE is played by most traders. The majority of folks, including the cab driver and shoe shine boy, are all short the euro. An S&P downgrade of France debt will have the euro shorts throwing confetti but the expected Friday announcement did not occur. Interestingly, the chart is more agreeable to seeing a bounce in the euro now. Note the positive divegence blue lines indicating that price should pop upwards. Of course, any news on a France downgrade and price would plummet.

The ULE fell from 29 to 24 in 33 trading days, a month and a half, a 17% drop. The oversold stochastics and RSI want to see a bounce so the euro can take a rest from the beating. After a bounce, however, the downside should resume since a downgrade of France debt is inevitable in the new year. Projection is a bounce now, in concert with some Santa Claus Rally buoyancy, and then the selling will resume afterwards for a lower euro in 2012. Of course if the S&P downgrades France at any time, the euro and equities markets will collapse.This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.