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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (37397)	6/23/2002 12:49:13 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69921

Close: The major averages finished the week towards their worst levels of the session. Despite the near-term oversold condition of the markets, buyers were reluctant to step in going into the weekend. Notably, both the CBOE Volatility Index (VIX) and the Nasdaq Volatility Index (VXN) are both approaching new eight-month highs. These indices are inversely correlated with the equity markets and serve as a measure of market uncertainty more typically referred to as fear... The catalysts for Friday's sell pressure were limited though the triple witching expiration certainly contributed to the market action. The triple witch is named as such because it represents the expiration of three different investment/trading vehicles -- options, futures, and options on futures. The expiration means these investment vehicles cease to exist after today which forces the capital committed to them to find a new home. As a rule, this rotation generates additional volume and volatility in the markets both of which were evident for a good part of the session... Also contributing to investor concerns is the fact that the dollar extended its move sharply lower. The dollar is now trading at a two-year low against the euro as euro bulls talk about near-term parity with the dollar. Note that multinational companies such as MCD, GT, PG, KO, CL, TUP, DOL, BEAV, and CSK should benefit from the continued weakness in the U.S. dollar. The dollar softness strengthens foreign currencies making operations abroad for these companies more profitable...