OK, there it is: an aggressive headline and prognostication. As readers of these pages know, September 13th is an important cycle date to us. On it, you want to look around the world financial markets and see what asset is at an extreme, and potentially expect a reversal in that market. Crude might be a possible candidate for an extreme and a reversal, but we won't be happy looking for one there unless we have already reached our previously forecast Fibonacci traget at $37.22 (possible of course, but unlikely in two days time). Instead, the beaten up euro with a paltry 4% bullish sentiment statistic would seem the obvious candidate to expect and be looking for a low.

Now this is a very specific cycle prognostication, but we can add to it at least one broader anecdotal fact: the cover of Futures magazine just handed the U.S. dollar the kiss of death. You see, much as analysts Paul Montgomery has long studied the cover of such magazines as Time and Newsweek as a contrarian signal for the equity markets (a bearish equity-related Time cover actually being deemed bullish, and visa versa), I have noticed that Futures magazine has an uncanny ability to provide a similar such contrarian signal.

For example, back in July 1998 they published a cover "The U.S. Economy: It's Gr-r-r-eat!" right in time for the biggest equity slide and financial crisis since the Crash of 1987.

They had also published a bullish cover for the U.S. dollar in April, 1998, a bit in front of the July intra-month high, but right into the highest monthly close the U.S. Dollar Index would achieve for over a year.

Now the U.S. economy and dollar did eventually recover in these prior instances, but the Futures magazine covers were nonetheless a great contrarian indicator that a significant rest in these trends was due first.

Chart produced using Advanced GET End-of-Day

So it is with this in the back of our mind that we turn to the current cover of Futures magazine as it arrived on our doorstep a few days ago. If history is any guide, the dollar should shortly stop dead in its tracks, and the first sizeable euro rally in its short existance will transpire.

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Sand Spring Advisors provides information and analysis from sources and using methods it believes reliable, but cannot accept responsibility for any trading losses that may be incurred as a result of our analysis. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities, and should always trade at a position size level well within their financial condition. Principals of Sand Spring Advisors may carry positions in securities or futures discussed, but as a matter of policy will always so disclose this if it is the case, and will specifically not trade in any described security or futures for a period 5 business days prior to or subsequent to a commentary being released on a given security or futures.