Is AUDUSD done?

One of the  key components of the global markets - AUDUSD is showing some strange behaviour, that could translate into the full-blown panic in not so distant future.
In the coming days we should find out if the current wave is an impulse as shown bellow and hence if we could expect an unravel of carry trade in months to come.

The start of the big drop tomorrow

I was wrong big time on the ending of the correction. Hopefully Mister Market always clarifies its course. My version is below, the most likely outcome is the start of the 3d wave down tomorrow. The ending diagonal seems to be about complete.

Correction is about over?

The correction which has started last Friday has a good chance to finish today. My target for SPX is 1083 and for NDX 1785. EUR/USD continue to be weak, confirming my previous call on euro. The next week should be strong on the downside for all risky assets.

Fast and furious

In the not so distant past the market was taking its time to correct. After a 1st wave, we could expect 50 to 62 percent of retrace in time as well as in price. Not this time. We have really entered a liquidation mode. We're in hurry to liquidate all this "risky" stuff we've hoarded since the beginning of March '09.

So, yesterday (Feb, 4) we have completed the first minute  wave (1105 -> 1063 for SPX) of the 3d minor. Usually, the third waves are strong and often extend. So a reasonable target for this minor one could be at near or below 1000 on SPX and 2000 on the  Nasdaq Composite.  We'll reach the bottom of this third very quickly, most likely next week.

A tough call

In the time of rush on gold, I'd like to share my call on Silver:
We gonna put a top in coming days under the 08' highs, the most likely around 19.40 for the ETF (SLV). This top has a very good chance to stay for more than a year, and if the markets plunge in the second wave of deflation, as I expect, we'll see silver under 08' October's lows of 8.50.