Sorry, but we’ve run out of dollars
This morning Bloomberg News reports, “The Powershares DB US Dollar Index Fund suspended distribution of new share baskets after exhausting its capacity to create stock under a registration statement with the Securities and Exchange Commission.” The ticker symbol is UUP, and it moves with the Dollar Currency Index. That is, when the Dollar increases against the Euro and Yen, the UUP goes up in price.
Translation: Sorry folks, we’ve run out of dollars!
[Dislosure: Rocky recently bought a “slug” of UUP calls as a trade. If the UUP trades at a substantial premium to it’s net asset value because of this “shortage,” Rocky will gladly sell his UUP dollars to the hungry buyers for more than a Dollar. This is a temporary technical/arbitrage condition. Rest assured, the Federal Reserve’s printing press is still running 24/7.]