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Gold was up in the overnight session hitting a high of 1231.20. We have attached our updated daily gold chart and it appears that gold has now started wave ^iii^ of .iii. of -iii-. Our next big challenge is to clearly break the 1239.00 high, which we suspect we will be doing in the next 24 to 48 hours.


We will be adding 2 long positons at 1239.10, and at that time will be also raising our stops to the 1167 level..


We remain long all previous positions, with stops at 1141.70.




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We have updated the daily chart of crude and as you can see we likely only need one more drop below 46.83 to complete the minimum requirements for a complete five wave impulsive drop from the wave -iv- high of 56.59. We did trade to a low of 46.71 in the overnight session, at the time that this post was being written. We now need to be on guard for a sharp reversal in crude that will mark the end of wave iii. Watch for an intraday posting to go long with some spec positions, as the wave iv rally will be in the order of $15 to 20, we believe.




The S&P rallied back to the 2054 level. This is not a concern for us. It just means that wave .ii. has become a little more complex that we had suggested in last Friday's End of Day Post. Outside of that we expect the next big event in the S&P will be down in wave .iii. of -i-.


We remain short with stops as previously indicated.




The USDX looks to have completed a three wave correction from last week's high of 92.53 to the overnight session low of 91.73. From the 91.73 low, it looks like the USDX has rallied in an impulsive fashion. This suggests to us that the high at 92.53 will be challenged. We believe this last run up in the USDX will be the end of the long awaited wave ii of C. We will be looking for a shorting opportunity accordingly.




NG fell in the overnight session and we exited our long positions. We are still not sure what is happening within wave -v- of (c ) of ii as we thought we had a five wave drop when we hit the 2.81 low. We will look for additional opportunities in the market moving forward. A drop to below 2.81 looks highly likely now.




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We have attached the long term HUI and XAU and want to draw you attention to where both of these markets are after last week's trading. As you can see on the charts both of these markets are poised to break long term multi-year down trend lines. Weekly closes above these down trend line lines would confirm to us that wave B has ended as shown on each of the attached charts. This will be an important week for these markets as after these trend lines are broken we suspect that many more Investors will start going long these markets.


In the shorter term we have traded above the wave ^iii^ high of 20.69, but based on the intraday charts wave ^v^ appears to have higher to go. We expect any correction in the market to be short and used as further buying opportunities. We want to repeat last Friday's End of Day of Post, as follows:


"We do note that the retracement level of wave ^iv^ was rather deep (ie: between 50 to 61.8{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} of wave ^iii^, which could suggest to us that wave ^iii^ did not end at 20.69 and that it is subdividing again. This would not surprise us as we believe this multi-year wave C rally is going to be very explosive to the upside. For now we are keeping this option as our alternate and our preferred is what is shown on the updated 60 min GDX chart.


We have modified the count below to match the graphical count shown on our 60 min GDX chart:


(i) = 18.91;

(ii) = 17.16;


-i- = 18.48;

-ii- = 18.76


.i. = 18.71;


*a* = 18.05:

*b* = 18.60;

*c* = 17.95, to complete all of wave *ii*:


*i* = 18.80;

*ii* = 18.40. Note that 50{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} retracement is 18.38:


^i^ = 19.26;

^ii^ = 18.76;

^iii^ = 20.69:

^iv^ = 19.61:

^v^ rally is now.