BIG MOVES over the last 48 hours. As you may know, we've been preaching about risk aversion and unfortunately, missed it by 2 days. We anticipated this big move to occur during Friday's NFP session but the market proved resilient and we thought that it was a bullish sign for more dollar losses. Then, following Ben Bernanke's statement, fear started to snowball and yesterday's price action may just be the beginning.
It's still premature to call this a reversal, however, all the signs are pointing to one. We are now looking only movement in favor of the dollar and the yen. As we noted earlier in the month, August can be tricky due to lack of volume and market participants. If the market panics, expect big sell-offs with sharp retracements that don't last long. Just as a reminder, stay patient; if you miss a trade, don't feel rushed to get in the market. There will be many more opportunities to trade.