The broader market has rallied about 20% from the Friday intra-day lows. Some stocks, particularly large-cap basic materials (Alcoa; US Steel) rallied around 40% (!).
The rallies have taken shapes of impulsive 5 wave moves, suggesting that, after a correction, this move is likely to continue higher.
The declining volume of this rally also suggests an imminent correction.
Copper is setting up for a good rally, with first targets around 217 - around 27% from current levels.
Finally, the USD fell in a great, clear impulsive 5 waves from the high. In these markets, turning points are particularly tricky to pick, and with the current 50% retracement achieved, it might be a good idea to scale into USD shorts, but be prepared to add all the way to 1.22. Targets, on USD/CHF extend as low as 1.10 - 1.06
No comments:
Post a Comment