Gasoline On The Rise
Once again, the United States Gasoline Fund (NYSEARCA:UGA) is trading higher by 0.60 cents to $57.13 a share. Last week, the UGA pulled back after making a new three year high at $58.88 a share. The recent pullback in the UGA also occurred as the major stock indexes sold off. This tells us that the UGA is trading inverse to the U.S. Dollar Index futures (DX-M2). This morning, the U.S. Dollar Index futures are trading lower by 0.43 cents to 479.56 per contract. Unfortunately, if the stock market is going to inflate and trade higher the price of gasoline is usually going to trade higher as well. Short term traders should watch for intra-day resistance on the UGA around the the $57.50 level. Yesterday, the UGA recaptured the daily chart 50 moving average and this is a short term sign of strength. The average price of unleaded gasoline in the United States is now $3.91 a gallon.
Light sweet crude is also rebounding higher today. Spot crude is trading higher by 0.78 cents to $103.48 a barrel. The iPath S&P GSCI Crude Oil Total Return (NYSEARCA:OIL), and the ProShares Ultra DJ-UBS Crude Oil (NYSEARCA:UCO) are all trading higher on the session. These equities will also trade inverse to the U.S. Dollar Index.