There are a few alternatives on the table that I think may be going on. Either this wave down is subdividing and we are up for a few fireworks next week, or the bounce still has some more powder left.
We have to let the market show us the path, there are times where the patterns are clear as water and we have to take action in order to take advantage of them, there are others where it's a bit fuzzy of where we are in the general scheme. These are when we should be out, waiting for the market to clear itself.
As for the US Dollar, the trend remains clearly up. Wave 3 is subdividing so I think we still have some more upside to go before a more meaningful correction, although corrections can be pretty shallow. Remember what I've said, when the larger degree trend is up, surprises happen to the upside, so, our goal is to spot bottoms not tops.
The major signals of Zé Manel on the daily, remain the same. Trend is down. Of course it can always change, but so far my bet is on the short side.
We'll see how next week develops, and I am eager to see how it will fold out
