Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for November 14.

Many Federal Open Market Committee members have made a point of signaling some hesitance to cut rates again in the near-term, as a weaker US dollar and record high oil prices significantly raise inflation risks in the economy.

Mass sentiments take hold of investors like a rabbit’s dodging reflex. It is instinct at work. When an investor sees his fellow investors take flight, he straps on his wings too. When he sees them calmly buying more stock at 20 times earnings, he buys too. This herd instinct is fatal to investors.

The Producer Price Index is anticipated to jump in October with the annualized rate predicted to hit a two-year high of 6.4 percent. US financial markets are more likely to respond to the Advance Retail Sales report, with surprises to the upside or downside likely to spark significant volatility, particularly in the equity markets and FX markets.

The wash of credit, which lifted spirits and asset prices all over the planet, is ebbing. And once begun, it is probably impossible to reverse it.

The carry-driven sentiment in the GBP/USD pair is a bit overpowering right now so traders should keep an eye on the status of the equity markets and other FX carry trades like GBP/JPY.

This week John Mauldin looks at why there are more mortgage write downs coming (in a self-fulfilling prophecy) in the financial sector, how an obscure new accounting rule is shedding light on a lot of risk in the world's banking system, how this is all tied to the consumer and is part of the reason for the fall in the dollar.

Lawrence G. McMillan reviews the options market in his weekly column for November 9.

Suddenly, the question marks are back. What is the meaning of the credit crunch? Is Bernanke fighting inflation, or fighting deflation? Are stocks going up? How about the dollar? Is gold hitting another peak? And what is ANYTHING worth when EVERYTHING floats on a bubbly sea of shifting exchange rates?