Gasoline Trades At Another New 52 Week High

Gasoline is trading at a new 52 week high this morning. The average price of gasoline at the pump is now $3.91 a gallon. The United States Gasoline Fund (NYSE:UGA) is trading higher this morning by 0.01 cent to $55.75 a share. As long as the U.S. Dollar Index continues to decline lower, gasoline could continue to rally higher. If traders look at a chart of the UGA, they will notice that gasoline took off to the upside once the Federal Reserve announced it second round of quantitative easing or U.S. Treasury purchases late August 2010. When the Federal Reserve buys U.S. Treasuries it creates cash reserves and dilutes the strength of the U.S. Dollar.

WTI oil is also trading higher this morning by 0.38 cents to $114.29 a barrel. The 52 week high for WTI oil is $114.65 a barrel made in early April. The United States Oil Fund (NYSE:USO) is trading higher by 0.30 cents to $45.44 a share. The stock markets and oil have been trading higher together over the past month and that tells us that the movement in the U.S. Dollar Index is the driving force behind the action in the stock and commodity markets. In other words, everything is trading inverse to the U.S. Dollar Index at this time.

About Nicholas Santiago 575 Articles


Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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