The Bigger They Are. . .

• June 6, 2001
• Marc Dupee

The bigger they are, the harder they can fall. Unleaded gasoline
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logged some of the best gains in the commodities world this year, but now is 15%
off its contract highs and has retraced nearly 50% of its run-up since December.
The contract has been giving clues that its upside run had terminated and to
look for shorting opportunities. On May 31, unleaded registered on the New
10-Day Lows List and closed below its 50-day moving average. And for the past
two days the contract has been on the  Implosion-5 List
after closing at a one-month low on June 4. 

With the potential uncertainty of yesterday’s OPEC
meeting out of the way (oil ministers did the expected and left output quotas at
current levels), traders remained focused on inventory data showing rising
stockpiles of gasoline, crude oil, and distillates. The trade association
American Petroleum Institute reported inventories rose after last night’s
close. 

Also in the energies, July crude oil
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is triggering out of its
Pullback From Lows
setup and is trading at a new 10-day low. 

From the Implosion-5 List,
natural gas
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consolidating losses and continuing to make good on a Pullback From Lows
setup after yesterday’s big outside bar down on
contract-record volume. 

After two-day
pullbacks from lows,
euro FX futures
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trading outside bars near their lows, magnetized by downtrend channels the
contracts appear destined to fulfill. Both contracts have been on the Implosion-5 List
since May 23 and are making good on
Off The Blocks
setups below yesterday’s last-hour lows. 

Going the other way in contra-step to the continental
currency futures, June dollar index futures
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List setup as they rally to a new contract record.