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Don’t Bet Against Uncle Sam

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Uncle Sam wants you to bet on a strong dollar. But you can’t always trust relatives with your money. What to do?

If you regularly compare the dollar to foreign currencies you already know that the greenback is mighty weak. Large deficits, the housing crisis and low interest rates have caused the dollar to drop, much like the first leg of Coney Island’s Cyclone.

But just like that world famous roller coaster what goes down can also go up. Ben Bernanke is set this week to stop the flood of cheap dollars to the world by cutting interest rates just one more time. At the same time, foreign banks may be forced to aggressively cut rates as their mortgage crisis worsens abroad.

As we've been telling you for a couple weeks now the greenback is poised for a comeback. Now Barrons is on board; they’re predicting a 12% surge in the dollar over the next 12 months.

Uncle Sam wants you to bet on a strong dollar. But you can’t always trust relatives with your money. What to do?

I firmly believe the dollar will rip in the second half of this year, Guy Adami says.

I agree and I’m short the CurrencyShares British Pound Ster. Trust , reveals Karen Finerman.

Take that a step further, counsels Tim Seymour. If you believe the dollar is going up than oil will likely go down because oil is nominated in dollars. Why not trade the MACROshares Oil Down Tradeable Shares and/or UltraShort Oil & Gas ProShares .

If you want to go short, bet against gold exclaims Jeff Macke, not oil.



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Trader disclosure: On Apr. 28, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (MSFT), (DIS), (INTC), (ATVI); Seymour Owns (AAPL), (EEM), (F), (HAL), (INTC), (MSFT), (TSO), (DUG); Seygem Asset Management Owns (GFA), (PBR); Finerman's Firm And Finerman Own (FLS), (HD), (KALU); Finerman's Firm Owns (MSFT), (NOK), (SUN), (TSO), (VLO); Finerman's Firm Owns A Bullish Call Spread In (YHOO) And Owns (YHOO) Stock; Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY), (COF); Finerman's Firm Is Short The British Pound; GE Is The Parent Company Of CNBC; NBC Universal Is The Parent Company Of CNBC