Dec 29 Captain Ewave Morning Update For Traders



Gold was steady in the overnight session as we continued to correct the rally from 1172.80 to 1199.10. We also are looking to break above the down trend line connecting 1238.90 and 1223.80, likely today or in the next overnight session.

The next rally in gold would complete a small 5 wave impulsive sequence that started at the 1170.70, wave .ii. of -ii- low.




Both options in crude still remain valid, based on the overnight trading action, although our preferred is still Option 1: the Pure Triangle. In the overnight session crude rallied off of Friday's low of 54.52, which we have now labeled as wave *d*. We are now rallying in wave *e* to  complete the entire triangle.

Upon completion of this triangle we should thrust lower to at least the 53.95 wave -iii- low to complete all wave -v- and iii. Our wave iii projection remains at 50.00.

After wave iii ends crude will see a likely $15/20 rally in wave iv. Remember that this rally will coincide with wave e of b rally in Suncor. Which currently is a large triangle formation. Review the previously sent long term Ewave Chart.



The S&P was a little softer in the overnight session after hitting 2088.64 last Friday. Our long thinking this market has not changed as we still believe a major top has either occurred or will occur in this next week or so. We do note that in overnight intraday chart, the S&P looks to be falling in a small impulsive setback from its 2088.64 high.

We think this is worth a couple short positions risking to Friday's high of 2088.70. Watch for intraday posts on this market. We will add  2 more shorts on a break of 2075.00.



Our 60 min GDX chart tell the story for this market, which we will be updating and submitting daily now, after this market closes. Our next challenge for the GDX will be the previous 18.91 high. We continue to hold all previously purchased long positions and plan to add in the future.




The USDX has failed to make a new high in the overnight session and like the S&P we think this market is on the verge of making a major top in wave ii of C. We are still short this market risking one tick above last week's high.

We will add to this short position at 89.75.



We indicated in out last End of Day Post on Friday that NG had reached our .iii = 2.618.i. target of 2.95, with the low on Friday being 2.97. NG has rallied a little in the overnight session, on the signs of cold weather coming to most of USA for next couple of weeks. We suspect that wave .iii. is not over at 2.97.

We are now expecting a small wave .iv. of -v- of (c) rally to unfold, which should be followed by one more drop in wave .v. to complete all of wave -v-, (c) and ii. Wave .iv. should rally between 23.6{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} and 38.6{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} of the wave .iii. drop.

Captain OUT!