Dollar Decimated

May 17, 2002
Dave Landry

Each evening we
focus on the most interesting aspects for the upcoming
trading day. The comments are based on observations of the
nightly updates of the Futures and Market Bias pages. They
are provided for educational purposes only and are not
intended to be direct trading advice. Also, keep in mind
that these remarks are made up to 12 hours in advance of the
markets opening. Therefore, overnight events may alter the
outcome of these observations.

June crude
(
CLM2 |
Quote |
Chart |
News |
PowerRating) mentioned recently, still looks like it has the
potential to rally out of a loosely-formed cup and handle.

Looking Ahead

The Dollar got creamed on Friday. Once again, this could set up opportunities in the inverse currencies soon.

The VIX stretched away from its 10-day moving average (a) on Friday. This action sets up a CVR III sell signal. Because this system tends to lead the market, there exists the potential for a sell off in the index futures over
the next few days.