Currency Market - Japanese Yen Highlight #4
Trading techniques from "The $upertrader's Reference
Manual" are used to enter the Japanese Yen 1 day after new 7 year low.
(COMMENT #s 557, 576)
UPDATED 19980804
COMMENT 1998-557
1. Let's turn to page 335 in "The 1998-99 $upertrader's Book of Linear Time
Cycles".
2. As noted in COMMENT # 450, this remains the "King Kahuna" of the markets.
3. September made a new low yesterday.
4. This new low was not CONFIRMED by the overnight spot futures, day session spot futures,
or cash market index (see pages 171-184 of "The $upertrader's Reference
Manual").
5. Momentum oscillators such as daily RSI and Slow Stochastics and so on have further
DIVERGED with the new low in September.
6. See page 398 of "The 1998 $upertrader's Almanac - 2nd Half Edition".
7. What else needs be said?
UPDATED 19980809
COMMENT 1998-576
1. The Japanese Yen made a new low Friday.
2. The low occurred 53 calendar days from the major low of June 15 (FIBONACCI # = 55).
3. The low occurred 34 trading days from the major high of 980619 (FIBONACCI # = 34).
4. Momentum oscillators such as RSI and Slow Stochastics are both above their values of
980615.
5. Momentum oscillators such as RSI and Slow Stochastics are both above their values of
Monday's low of last week.
6. This market opened down and closed lower Friday.
7. Friday's low did not break the spot futures low of 980615 in the spot futures day
session.
8. This price was 6828.
9. Friday's low did not break the spot futures low of 980615 in the spot futures overnight
session.
10. This price was 6820.
11. Friday's low in the September contract for both the day and overnight sessions was
6866.
12. The 980615 cash market low was also not broken.
13. If you follow Elliott waves, the current interpretation is still that the 980615 to
980619 move up was wave "1", the low of 980626 was "a of 2", the high
of 980720 was "b of 2", and the move down to Friday's low completed the "c
of 2" wave.
14. The retracement was almost 100 percent.
15. Note how far other currencies such as the DMU and SFU are above their recent lows.
16. The entirety of this COMMENT is a story of major DIVERGENCES (see pages 171-184 of
"The $upertrader's Reference Manual).
17. Can you see them?
18. Hence, again, we're right at the heart of major turns (see page 398 of "The 1998
$upertrader's Almanac - 2nd Half Edition").
19. Isn't this exciting?
20. Our risk is, again, minuscule.
21. We'll probably know by early Monday morning whether this interpretation is correct or
not.
22. If so, it should work out BIG!
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