One day, life can be all hunky dory. The kids have stopped arguing, the birds are chirping and we’re feeling good. Then suddenly… haywire… the market suddenly turns into a mass murderer.
They come every now and then and it requires a mammoth session of repair and correction. Obviously, I try and get everything correct but there’s always one joker, a wave out of line but which also lent itself to a follow-through that worked quite well … but finally breaks down and generates the need for a review. It occurred in EUR/JPY earlier – but having resolved that it went on to work well.
Yesterday it was the turn of USD/JPY, EUR/USD and USD/CHF… Actually, the issues with USD/JPY and EUR/USD were both the same – a shorter 5-wave move and follow-on that broke down. I tend to call these “overlaps” where the original Wave (i) actually produced a longer Wave -iii- with a Wave -a- & Wave -b- that then went on to form a Wave -iii- – but only seen in retrospect. Thus, the longer move produced a Wave -v- and thus Wave (a)… the result? A deep Wave (b) that wipes out all the stops…
USD/CHF was a slightly different – a mammoth mess at one stage, a projection ratio slightly off, and then instead of a limited pullback we saw a bloodbath… However, we’ve either seen the end of this, perhaps a marginal new extreme, but then we can begin to build up the structure again.
So EUR/JPY is good to go. AUD/USD has a slight ambiguity – but only in terms of whether it found its high or that a minor new high could occur.
Thus, following this debacle we’re going to have to start building up the next leg… It’s hardly likely to be a big range day today.