Predictably, the market staged a huge reversal while I was attending the memorial service on Friday. The last time I attended a memorial service during a trading day, the USDCHF made an all-time low and reversed sharply after I had been stalking it for an entire year.
Still, I'd rather be fully present during a rough time for a friend than pre-occupied with positions, and this time was no exception. I prefer not to try to do both. There is always another trade.
Today, the violent reversal seems a distant memory. And why not? There were only three waves in the reversal, which qualified it as a correction instead of a change in trend. Futures have hit new rally highs in the overnight session. Asia had a good night, and Europe is well bid. So higher prices are likely on the way.
Friday hit 1964.04, just below the 1965-1967 area previously cited. Fib extension targets using Friday's high and low now include 1977.25 and 2000.
The 1928.29 stop remains all-important. Another reversal around the 1970.07 gap would raise the chances of the rally from 1904.78 being an upward correction.
Elsewhere, the cover shot of this year's September Vogue leaked and it's bad news for Twitter. The Instagirls! cover line says it all. Also, this year's 856 total pages are down 6.55% from 2012's 916.