Miss the stock market rally? No worries. This strategist has a currency play on the market's rise.
If you're looking for a way to catch up to the stock market rally, you could do a lot worse than look at the currency market.
The Australian dollar tends to track U.S. stock market moves pretty closely, but lately it's been behind the curve.
That's making Todd Gordon, co-head of research and trading at Aspen Trading Group, a bit cautious on the Aussie. He argues that the currency tracks China's Hang Seng index a bit more closely, and performance there has been less promising. "I don't really see this as a great opportunity," he told CNBC's Melissa Lee.
But Kathy Lien, a managing director at BK Asset Management, is more bullish. She argues that the Reserve Bank of Australia is likely to stay neutral on interest rates for the rest of the year, and as a result, "you're going to see some position adjustment" on the Aussie from traders expecting rate cuts.
Also, she says, "I believe that the Federal Reserve is going to move forward with more stimulus" at its next meeting, and that "would be dollar negative."
So Lien wants to wait for a pullback in the Australian dollar and then buy it at 1.0300 against the dollar, setting a stop at 1.0200 and a target of 1.0475, just below the "psychologically important level of 1.0500."
left/CNBC/Sections/News_And_Analysis/__Story_Inserts/graphics/__ICONS/icon_story_360_TV.gif1505000lefttruehttp://msnbcmedia.msn.comCNBC 360 TVfalse1PfalsefalsefalsefalseCNBC TVTune In: CNBC's "Money in Motion Currency Trading" airs on Fridays at 5:30pm and repeats on Saturdays at 7pm.
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