Weekly Commentary Feb. 21, 2010

What an absolutely incredible few weeks its been. Yup, I'm talking about the complete 180 degree attitude-shift toward the dollar. Anybody remember just about 3 months ago...Everyone was calling for the dollar to collapse...and the Euro would take its place, on the world stage? 1500 Pips later...now everyone is terrified about Greece and the future of the Euro. Absolutely incredible. Now the "Short the Euro" trade is getting a little crowded, and might have actually seen a climax on the "Fed Surprise" late last week. Even if the dollar still has some upside against the Euro, it is getting tired and is due for a well deserved rest...potentially carving out a few hundred pips of retracement before resuming the dollar strengthing trend of 2010. As far as the US markets...most of the retracement back to 10450 is already complete with the possiblity of one last throw over, before the downtrend resumes strongly. As such, 4/5 of the total short position will be complete this week. The final break of the markets is imminent. Get ready for things to get hectic. Good luck and Good trading. -Dio. Real time updates via: twitter.com/dioveritas