Sv: [RT] More on Bonds

["Stig O" <olausson@xxxxxxxxxx>]

>Also I am of the opinion that in general pattern failures 
produce much larger moves than pattrn targets. I guess this is so as covering 
and position reversal by >pattern completion trades creates something similar 
to a short squeez. Maybe this same mechanism causes the frequent retouch of a 
broken trendline.
 
Hey,
Finally somebody else who have reflected on 
Failures.
 
In that context I would like to post a chart of the Dollar 
Index which I posted in May or sent to friend Idon't remember. The text is still 
there.
Notice how the $$$ broke out on the "wrong" side of 
the rising (bearish) wedge (red lines), the minor retracement to test the 
trendline and than the almost vertical rise to this present level.  Typical 
of breakouts on the "wrong" side, in my opinion.
 
This chart is also in response to Dan's chart, indicating that 
the last upmove has been an ABC correction.
 
What I see, is a Rounded Bottom" From the decline from 
the 1985 top, which have developed into an impulse move where we now are 
somewhere in wave 3 of 3 of 3.  that scenario also fits into the impulse 
move out of the wedge. (please disregard the Letters ABCDE they are not EW 
counts)
 
Look at the decline from the 1985 top to 1987 - there are 
absolutely no resistance anywhere chartwise. turn it around and the Euro will 
drop like a stone. No support anywhere.
 
Another interesting point is to mark the rounded bottom as an 
inverted Head And Shoulder bottom. Then what we might see now, the last week, is 
the beginning of a retracement to the break out area around 105. But we haven't 
broken any trendline yet and we are not closing in on any fib resistances until 
above120, so i think the trend is intact. The potential in the inv. H&S is 
in the 127 area.
 
 
Stig 
 
 
 






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