JAN 6 AM UPDATE

Gold:

We are sending out the updated daily gold chart, that provides our current EWave Analysis for this market. It is likely that wave .ii. of -iii- ended at 1167.30. If this is the case gold should start to accelerate higher in wave .iii. We will provide projections for the end of wave .iii. in future posts.

As we mentioned in our last End of Day Post it appears that gold has now broken above the top trend line of the expanding diagonal triangle and in the overnight session gold did continue modestly higher. Our next challenge will be the 1239 high, which we expect to reach this week.

Crude:

 

Crude hit a low of 48.50 in the overnight session. Everything is now in the place for a big rally in wave iv, and we would suspect that wave iii ended at the 48.50 low. We will be looking for additional signs in the intraday charts over the next 24/48 hours to confirm whether this is the case. Wave iv should rally $15/25, but since it is a corrective wave iv the rally will be choppy and likely have very large swings in price levels.

S&P:

 

See the updated 10 min S&P chart, that is available on the Captains website in the top menu for speedy access.

 

Nothing more to add to this market, as our detailed EWave analysis on the latest 10 min chart provide our current thought process. Either wave -iii- ended at 2017.34 or we are going to have one more dip to the 1990 level before wave -iii- ends.

Upon completion of wave -iii- we should expect a corrective rally in wave -iv- that should retrace between 23.6{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} and 38.2{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} of the wave -iii- drop.

Once we complete the first five waves down we should expect a larger rally that will retrace between 50 and 61.8{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} of the entire drop from 2093.55 to the end of wave -v- and (i).

 

We remain short 2 positons, and do not plan to take profits until we reach the end of wave -v-.

 

USDX:

 

Nothing new in the overnight session. We are still looking for the first signs of our major top in this market.

 

NG:

 

This market fell to new low in the overnight session hitting 2.8146. Our stops were at 2.81 and we were not stopped out. At the moment we are not sure what this latest drop in the NG means.

We are still long 4 specs, risking to 2.81, and will likely be stopped out today.

HUI/GDX:

 

We expect the HUI/GDX to continue higher in wave ^iii^. This market is looking very bullish with our next big target being the wave i high of 20.42.

 

A recap of our last End of Day Post is below:

 

"The 60 min GDX chart tells the story as all rallies continue to be impulsive looking and all setbacks corrective looking, on the intraday charts. As you can see on the 60 min chart wave *iii* has subdivide today. Whenever you get subdivisions like this you should except that this market is going to start accelerating higher in the very near future. Our updated count is below:

(i) = 18.91;

(ii) = 17.16;

(iii):

-i- = 18.48;

-ii- = 18.76

-iii-:

.i. = 18.71;

.ii.:

*a* = 18.05:

*b* = 18.60;

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

.iii.:

*i* = 18.80;

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

*iii*:

^i^ = 19.26;

^ii^ = 18.76;

^iii^ rally is now underway.

It looks like gold has broken out above the top trend line of our expanding diagonal triangle wave ^c^ which will likely send the HUI/GDX vertical for the rest of this week."

The Captain will be travelling tomorrow to the northeast US until Sunday. There will be no Morning Post tomorrow and possibly no End of Day Post also, but the Captain will be monitoring the markets and provide intraday posts via iPhone based on market action!

Thanks