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HARMONIC ELLIOTT WAVE

Wednesday, June 22, 2011

It looks like life is becoming a little more complicated…

After yesterday’s developments I am left to the conclusion that the market is just not ready to push the extremes. This is where the structures begin to develop a duality that needs to be resolved by observing the wave relationships but can actually leave us hanging in mid-air for a while as the larger market energies consolidate before making a final decision.

In short that implies a certain amount of confusion…

I have two basic approaches in mind, though there could be more, but should be distinguishable through the manner of how direct the current Dollar weakness develops. However, that does provide a brief clue – that the basic direction for now is Dollar bearish – and it’s just how far this moves and how direct that will hopefully provide clarity to the outcome.

Given the propensity for sudden whipsaws at these moments the general rule should be to keep positions conservative and to ensure both money management stops and trailing stops are employed.

The only place I see potential is in EURJPY which appears to want to push higher. USDJPY has had a great reluctance to extend its losses and yesterday’s rally in the cross has raised the possibility of a second look at the 117.89 high… Therefore, as long as supports hold this does seem to be the one market capable of seeing a more directional move...

Good luck
Ian Copsey

UPCOMING HARMONIC ELLIOTT WAVE WORKSHOPS IN HONG KONG AND SINGAPORE

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