Thursday, September 29, 2011
Thursday's Action - Stocks Working Lower; Euro May be Topping
Even though the structure right now may not be ideal for the resumption of the downtrend being underway, this type of imperfect movement is typical for 4th and 5th waves, i.e. 4th waves are often very choppy and unpredictable, and the following 5th wave can be even more unpredictable and imperfect. We have been seeing that play out the past few weeks. Yesterday's high should not be broken so I'm shorting into rallies against yesterday's high.
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I thought the euro would charge toward 1.4000 again before topping but it's possible a top is already in, at least in the short term. There's a near head and shoulders pattern in place now, but besides it not being textbook it still tells the same story, a rally that is in trouble. I favor the short side here against 1.3700.
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PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.