JAN 5 MORNING POST!

CAPTAIN EWAVE DAILY CHARTS UPDATE

 

Gold: 

 

Daily Gold Chart:

 

https://captainewave.com/wp-content/uploads/2018/01/ewjan52018gold.png

 

Short Term Update:

 

Gold continues to move higher and we are trying to extend our wave ^i^ rally!

 

We work on an expanding wave ^i^ of *iii*, and unfortunately cannot rule out the possibility that it is complete at the 1327.20 high. We could still move higher within wave ^i^,  with a quick run back to the 1362.40 being possible. Upon completion of wave ^i^, we should expect a wave ^ii^ correction that retraces between 50 to 61.8{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} of the entire wave ^i^ rally.

 

Our first projection of the end of wave *iii* is:

 

*iii*=1.618*i*=1495.20.

 

Trading Recommendation: Short term traders could take profits here and then re-enter at the end of wave ^ii^. We plan to stay long and add at the end of wave ^ii^.   

 

Active Positions: We are long, with puts as stops, and will add at the end of wave ^ii^!!

 

Silver:

 

Daily Silver Chart:

 

https://captainewave.com/wp-content/uploads/2018/01/ewjan518si.png  

Short Term Update:

 

Silver continues to slowly inch higher also.

 

Wave .ii. is complete at the 15.64 low and we are now rallying in a subdividing wave .iii.. Within wave .iii. we are now rallying in wave ^i^., which could be complete at the 17.29 high. Upon completion of wave ^i^ we expect to see a wave ^ii^ correction, that retraces between 50 to 61.8{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} of the entire wave ^i^ rally.

 

Our first projection for the end of wave .iii. is:

 

.iii. = 1.618.i. =  22.03.

 

Trading Recommendation: Short term traders could take profits here, but we plan to hold and add at the end of wave ^ii^.

 

Active Positions: We are long, with puts as stops!

 

Crude:

 

Daily Crude Chart:

 

https://captainewave.com/wp-content/uploads/2018/01/ewjan518oil.png  

Short Term Update:

 

We are now waiting for confirmation that all of wave $v$ and ^c^ are complete at the 62.20 high.

 

We are now thrusting higher in wave $v$, with a current high of 62.20, as we have satisfied all of the minimum requirements for a completed wave ^c^ impulsive rally that started at the wave ^b^ low of 47.00.

 

We need to now be on guard for a major top in crude, although we still have a ^c^=^a^ projection of 63.05, which could be suggesting that crude still has room to move higher.

 

We are now exploring the short side of this market.

 

The rally from the wave *a* of .ii. low of 39.19 is not impulsive looking, so we are still expecting that we are correcting in a complex wave .ii. pattern. If this observation is correct then crude will be heading back to the 39.19 low again, once this current corrective pattern ends.

 

Suncor: We moved higher within a complex wave .b. rally and have reached a high of 38.16. We continue to watch for confirmation that all of wave .b. is complete at the current high, and that wave .c. lower is now underway.   

 

Trading Recommendation: Aggressive traders can consider going short crude now with a 63.00 call as stop.

 

Active Positions: We are now short with a 63.00 call as a stop. We will go long Suncor at 26.00!

 

S&P: 

 

Daily SP500 Chart:

 

https://captainewave.com/wp-content/uploads/2018/01/ewjan518sp.png
 

Short Term Update:

 

The S&P made another all-time new high in yesterday’s trading session. This stock market has now become nothing more than gambling hall based on no rational fundamentals, in our opinion.

 

This market is in danger of a very big collapse, as many indicators are very stretched…. and getting more stretched as this market moves higher. If our current analysis is correct, we should expect to see a very large drop in the S&P… 100 plus points in the near future.      

 

This is a now scary market for the bulls from an EWaves analysis point of view.

 

Trading Recommendation: Stay short and use calls as stops.

 

Active Positions: Very Short with calls at various levels as stops!

 

USDX:

 

Daily USDX Chart:

 

https://captainewave.com/wp-content/uploads/2018/01/ewjan518usd.png  

Short Term Update:

 

In yesterday’s Morning Post we said this: “On the Intraday Chart the rally from 91.47 to the current high of 92.00 is corrective looking, so when this correction ends except the USDX to move lower again.”

 

We are now moving lower!!

 

We continue to fall in wave $iii$ of ^v^ now, and expect further losses this week.

 

Active Positions: Flat

 

NG: 

 

Daily NG Chart:

 

https://captainewave.com/wp-content/uploads/2018/01/ewjan518ng.png Short Term Update:

 

NG has moved lower and it looks like all wave ^i^ is complete at the 3.096 high. Wave ^ii^ lower has begun, and we expect it to retrace between 50 to 61.8{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} of the entire wave ^i^ rally. Those retracements are:

 

50{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 2.84;

61.8{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 2.77

 

We will go long at the market, risking to 2.56. We have already reached our 61.8{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} retracement level of 2.77, with the current long in the overnight session being 2.771, at the time that this Post was being written.

 

Trading Recommendation: Go long at the market, with a stop at 2.56!

 

Active Positions: Long now, with a stop at 2.56, with a final target of 3.90!

 

GDX:  

 

GDX Daily Chart:

 

https://captainewave.com/wp-content/uploads/2018/01/ewjan518gdx.png  

Short Term Update:

 

We are watching for the end of wave -i-, and that will be determined by whether gold has completed its wave ^i^ or whether it is still moving higher, within an expanding wave ^i^.

 

A run to the upper red horizontal trend line (see Daily GDX Chart) at around the 25.50 /26.00 level cannot be ruled out as a possible quick target for wave -i-, but in any event, when wave -i- does end we should expect a wave -ii- correction that retraces between 50 to 61.8{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} of the end entire wave -i- rally.   

 

Our first projection for the end of wave iii is:

 

iii = 1.618i = 32.81.

 

We expect the wave iii will consist of a clear 5 wave impulsive pattern, of which we are now working on wave (i) of that pattern.   

 

Based on that we should expect the following from our current gold stocks/indices:

 

Kinross: Uncertain here. Nested bullish waves might be in play here. 

Barrick: Major low at 13.28, and we should now be heading sharply higher. 

Newmont: Higher with nested bullish waves in play here. 

SSR: Higher with wave 2 in place at 10.02. Wave 1 ended at 19.53, back in July, 2016.  

HUI: Higher now. See the Monthly Chart  

XAU: Higher now. See Monthly Chart.

 

Active Positions: We are long the GDX, ABX, KGC, NEM, SSR, and TSX:XGD with no stops!!