JAN 6 EOD UPDATE

CAPTAIN EWAVE EOD COMMENTS

Gold:

 

We will be sending out the updated daily gold chart(nearest futures), that provides our current EWave Analysis for this market.

On the daily continuation chart this market has broken above the top trend line of the expanding wave ^c^ of .ii. triangle. The only thing holding this market back is the strength in the USDX, which we think will be ending soon.

The strength is the HUI/GDX is also a positive as gold stocks usual lead gold. Although we are pretty confident that wave .ii. has now ended at the 1167.30 low, we will only be 100{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} sure when we break above 1239.00. This market has played with our emotions before and we want to give the respect it deserves.

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

Crude:

 

Crude hit a low of 47.56 in the day session. Outside of that the comments we made in today's morning post remain unchanged, so we repeat: "Everything is now in the place for a big rally in wave iv, and we would suspect that wave iii ended at the 47.56 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.

 

We believe that wave -iii- ended at 1992.44, which is just a little short of our 1.618 target of 1989.86. We now expect the S&P to rally in wave -iv- to between 2008.93/2019.13, as shown on the updated 10 min chart. We should also trade to the down trend line which is also shown on this 10 min chart. Wave -iv- should consist of at least one 3 wave pattern, but could become more complex like a triangle also.

We remain short 2 positions, and donot plan to take profits until we reach the end of wave -v-.

USDX:

 

From yesterday's 91.78 high, the USDX appears to be just trading sideways, which could be a triangle formation. We continue to see not real indication of a top.

 

NG:

 

We continue to be long this market, but have not determined what is really happening, at the time of this post.

We are still long 4 positions, risking to 2.81.

HUI/GDX:

 

No surprise here the HUI/GDX has powered higher as we suggested. We have also taken out the previous high of 20.42 and in doing so have added to our long positions.

 

It may be possible that wave ^iii^ ended at 20.69 and we are now working on a test of the 20.42 breakout, which would be wave ^iv^, as the 60 min chart indicates.

 

A recap of our last Morning Post, with today's market trading updated, 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^ = 20.69, if complete;

^iv^ underway now.

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