jan 7 morning post!

Captain Ewave Morning Post!

 

CDNX: 

 

CDNX Chart:  

https://captainewave.com/wp-content/uploads/2021/01/ewjan721cdnx.png

 

Short Term Update:

 

The CDNX was initially higher in yesterday’s trading session reaching a high of 905.55, although we closed a little lower at 897.52.

 

As you can see on our Daily CDNX Chart, we have now adopted our very bullish alternate count that is suggesting that all of wave .i. ended at 758.11 and all of wave .ii. at 665.41. We are now rallying sharply higher in wave .iii., which has an initial projected endpoint of:

 

.iii. = 1.618.i. = 1357.04.

 

Within wave .iii. we are working on wave -iii-, which has an updated projected endpoint of:

 

-iii- = 4.25-i- = 984.77.

                                                                                        

We are still expecting higher prices with next resistance at the 935.00/940.00 level.

 

Longer term after wave -iii- ends we expect a wave -iv- drop that retraces between 23.6 to 38.2{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} of the entire wave -iii- rally.

 

Trading Recommendation: Long the GDXJ as a long-term hold. 

 

Active Positions: Heavily long the GDXJ as a long-term hold!

 

 

 

 

GDX & Gold Stocks:

 

GDX 60 Min Chart:

https://captainewave.com/wp-content/uploads/2021/01/ewjan721gdx60.png

 

GDX Daily Chart:  

https://captainewave.com/wp-content/uploads/2021/01/ewjan721gdxd.png

 

 

Short Term Update:

 

The GDX was lower in yesterday’s trading session reaching a low of 37.47, although we closed only fractional lower at 38.46.

 

We have updated our current count for our wave *ii* correction to suggest that it is NOT complete at the 33.25 low, as shown on our Daily and 60 Min GDX Charts.

 

We appear to still be working on a double 3 wave corrective drop and within that pattern we should be complete or almost complete our second wave ^b^ at the 39.01 high.

 

After this second wave ^b^ ends we expect another drop in our second wave ^c^ to complete all of wave *ii*.

 

We expect our second wave ^c^ to reach our retracement levels for all of wave *ii*, which are:

 

50{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 30.98

61.8{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 27.49.                                   

 

Wave *ii* will also likely reach our lower red trendline before it ends also.

 

Our updated projection for the end of wave -3- is:

 

3 = 2.618 (1) = 66.37.

 

We do have higher projections, however, as gold is likely heading well above $5000/oz.

 

We are now going to add to our long positions at 29.50.

 

Our current analysis for these gold stocks and indices is as follows:

 

Kinross(Updated December 03):

 

We continue to rally in subdividing wave -iii- of (iii), which has an updated projection for its completion of:

 

-iii- = 4.25-i- = 19.25.

 

Within wave -iii-, we completed wave .i. at 10.24 and are now falling in wave .ii., which has the following retracement levels:

 

50{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 7.12;

61.8{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 6.88.

 

We have now entered this retracement zone with a current low of 6.88, so we need to be on guard for the end of wave .ii., and the start of a very sharp rally in wave .iii. of -iii-.

 

Longer term our updated projection for the end of wave (iii) is:

 

(iii) = 4.25(i) = 21.55.

 

Wave -iii- and (iii) can extend higher also.

 

Barrick (Updated December 02):  We are now rallying in an extending wave iii rally which has the following projection for its completion:

 

iii = 2.618i = 53.94

 

Wave iii still has along way to go and within this wave we are now rallying in wave (iii). Wave (iii) is now subdividing also, and it looks like we completed wave -i- at 31.01 and are now dropping in wave -ii- which that following retracement levels:

 

50{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 21.83;

61.8{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 19.66.

 

Our current low if 22.22 for our wave -ii- drop is 22.22, which is very close to our 50{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} retracement level, so we need to be on guard for its completion at that low.  After wave -ii- ends we expect a very sharp rally in wave -iii-. We will provide our first projected endpoint for wave -iii when we are sure that all of wave -ii- is complete.

 

Our current projected endpoint for all of wave (iii) is:

 

(iii) = 2.618(i) = 45.24.

 

Newmont Goldcorp: We are now rallying in (v) of iii, which has the following projected endpoint:

 

iii = 2.618i = 107.85.

 

After wave iii ends, we expect a wave iv correction that retraces between 23.6 to 38.2{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} of the entre wave iii rally.

 

HUI (Updated December 01): We are now rallying in wave 3 which has the following projected endpoint:

 

3 = 2.618(1) = 620.32.

 

Within wave 3 we are rallying in wave iii, which has the following projected endpoints:

 

iii = 2.618i = 481.46.

 

Within wave iii, we are now subdividing with wave (i) of iii ending at the 373.85, and we are now correcting with wave (ii), which has the following retracement levels:

 

50{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 258.18;

61.8{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 230.77.

 

XAU (Updated December 04): We are now rallying in wave (iii), which has the following projected endpoint:

 

(iii) = 2.618(i) = 226.55.

 

Within wave (iii), we are rallying in wave -iii- which is now subdividing with wave .i. of -iii- ending at 165.36. We are now falling in wave .ii., which has the following retracement levels:

 

50{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 114.04

61.8{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 101.93.

 

Wave -iii- has a current projected endpoint of:

 

-iii- = 2.618-i- = 201.84.

 

Trading Recommendation: Long Term hold of all gold stocks and indices. Add to longs at 29.50.

 

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

 

Gold:  

 

Daily Gold Chart:

https://captainewave.com/wp-content/uploads/2021/01/ewjan721gold.png

 

Short Term Update: 

 

Gold was lower in yesterday’s day session as we reached a low of 1902.60. After that low was made, we moved higher to reach 1929.50. In the overnight session we moved lower reaching allow of 1910.40.  

 

We continue to believe that all of wave ^ii^ is not complete at the 1767.20 low, that has the following retracement levels:

 

50{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 1764.40;

61.8{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 1690.40.

 

We believe that wave ^ii^ is a double 3 wave corrective pattern as shown on our Daily Gold Chart and it seems likely that all of our second wave (b) within that corrective pattern likely ended at the 1962.50 high.

 

We had a key daily reversal lower in yesterday’s trading session, which supports our lower price thesis, if it holds.

 

If our second wave (b) is now complete at the 1962.50 high, then we are now falling in our second wave (c) which has minimum target of 1767.20, but likely lower into our noted retracement noted above.

 

Our current projected endpoint for all of wave *iii* is:

 

*iii* = 1.618*i* = 2306.30.

 

We have higher projections also.

 

We will add to our long positions at 1735.00.

 

Trading Recommendation: Long gold. Use puts as stops. Add to longs at 1735.00

 

Active Positions: We are long, with puts as stops! Add to longs at 1735.00!

 

Silver:

 

Daily Silver Chart:  

https://captainewave.com/wp-content/uploads/2021/01/ewjan721si.png

 

Short Term Update:

 

Silver was lower in yesterday’s day session reaching a low of 26.71. After that low was made, we moved higher to reach a high of 27.48. In the overnight session we have moved lower reaching a low of 27.05.

 

We are currently working on the assumption that wave (i) ended at the 29.91 high, but we continue to work on our wave (ii) drop that has the following retracement levels:

 

50{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 20.78;

61.8{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 18.62.

 

We are still working on a complex wave (ii) that we believe is still underway, as we are still above our 50{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} retracement level for all of wave (ii).

 

We have updated our current count within wave (ii) to suggest that all of wave -b- ended at the 28.10 high and if that is the case then we should now be falling in wave -c-, as shown on our Daily Silver Chart. Our minimum target for the end of wave -c- is the wave -a- low of 21.81, but we expect we should drop lower into our retracement level for all of wave (ii) which are:

 

50{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 20.78

61.8{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 18.62.

 

We will add to our long positions at 19.50.

 

Trading Recommendation: Long and using a put as a stop. Add to long positions at 19.50.

 

Active Positions: Long using a put as a stop. Add to long positions at 19.50!

 

 

 

 

 

US 10 Year Bond Yield:

 

Daily US 10 Year Bond Yield Chart:

https://captainewave.com/wp-content/uploads/2021/01/ewjan721bond.png

Short Term Update:                                                                      

 

The US 10 Year Bond Yield moved sharply higher in yesterday’s day session and that trend higher has continued in the overnight session as we have reached a high of 1.063{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1}.

 

Wave (v) lower is still underway and subdividing as shown on the Daily 10 Year Bond Yield Chart. We completed wave *i* of (v) at the 0.398{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} low and likely all of wave *ii* at the 1.226{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} high. If that is the case, we should now be falling in wave *iii*.

 

Within wave *iii* it looks we are subdividing with wave ^i^ ending at the 0.568{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} low, but it now looks like wave ^ii^ is becoming a flat correction as shown on the Daily US 10 Year Bond Yield Chart. Within wave ^ii^ we completed wave -a- at the 0.957{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} high and all of wave ^b^ at the 0.504{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} low.

 

It looks like wave ^ii^ is still underway, with our retracement zone for wave ^ii^ being:

 

50 {6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 0.92;

61.8{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 1.00.

 

We have now exceeded our 61.8{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} retracement level so we need to see this market turn lower soon, otherwise we will need to conclude that all of wave ^ii^ may not be complete at the 1.226{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} high. Our retracement levels for wave ^ii^ are:

 

50{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 1.15{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1}

61.8{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} = 1.33{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1}

 

This is our alternate count now as shown on the Daily US 10 Year Bond Yield Chart.

 

Our current analysis is still predicting negative rates in the USA in the future.                                                                                                                                                                                              

Trading Recommendation: Flat.

 

Active Positions: Flat.

 

S&P500: 

 

Daily SP500 Chart:  

https://captainewave.com/wp-content/uploads/2021/01/ewjan721spd.png  

120 Minute SP500 Chart:

https://captainewave.com/wp-content/uploads/2021/01/ewjan721sp120.png

Short Term Update:

 

The SP500 was higher in yesterday’s trading session reaching a another all time new high at 3783.04. In the overnight session the SP500 Futures are up about 23 points!

 

Longer term we continue to rally in wave (iii), which has an initial projected endpoint of:

 

(iii) = 1.618(i) = 4001.14.

 

Our current projected high for all of wave -iii- of (iii) is:

 

-iii- = 1.618-i- = 3710.44. 

 

Wave -iii- is still underway, but we think that we are getting close to its final completion, as we note the ending diagonal triangle formation on the 120 Min SP500 Chart.

 

We again reached the top of the ending diagonal triangle formation at the 3783.04 high.

 

 

A break now below that lower red line of this ending diagonal triangle formation would suggest that all of wave -iii- is finally complete. This rally is getting rather long in the tooth we think, and we are due for a significant correction.

 

After wave -iii- ends we expect a wave -iv- drop that should retrace between 23.6 to 38.2{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} of the entire wave -iii- rally, which we will provide once we believe wave -iii- is complete.           

 

Trading Recommendation: Flat.

                                                                                   

Active Positions: Flat!

 

USDX:

 

Daily USDX Chart:  

https://captainewave.com/wp-content/uploads/2021/01/ewjan721usd.png

Short Term Update:

 

The USDX was higher in yesterday’s day session and that trend higher has continued in the overnight session we have reached a high of 89.93.

 

We continue to fall in wave *v* and -iii-. It looks like we could be heading to our second projected endpoint for all of wave -iii- which is:

 

-iii- = 2.618-i- = 86.26.

 

We need to be on guard for the end of wave -iii- and the start of our wave -iv- rally. Wave -iii- may have ended at the 89.17 low.

 

After wave -iii- ends we expect a wave -iv- rally that retraces between 23.6 to 38.2{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} of the entire wave -iii- drop, and we will provide those levels when we believe all of wave -iii- is complete.

 

The wave -iv- rally in the USDX will likely coincide with the second wave (c) drop in gold that we are now expecting is underway.

 

Trading Recommendation: Flat.

 

Active Positions: Flat. 

 

Crude Oil and Suncor:

 

Daily Crude Chart:

https://captainewave.com/wp-content/uploads/2021/01/ewjan721oil.png

Short Term Update:

 

Crude was higher in yesterday’s day session and that trend higher has continued in the overnight session as we have reached high of 51.28.

 

We are now working on the assumption that all of wave (ii) is complete at the 33.64 low.

 

If that is the case then we are now starting to rally sharply higher in wave (iii), which the following projected endpoint:

 

(iii) = 1.618(i) = 93.96.  

 

It now looks like wave $i$ of (iii) is extending higher with a run to the 55.00 level being possible before all of wave $i$ ends. After wave $i$ ends we expect a wave $ii$ correction that should retrace between 50 to 61.8{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} of the entire wave $i$ rally.  

 

Suncor: Within wave C we have modified our current count to now suggest that all of wave i ended at the 21.73 high and a very deep wave (ii) at the 10.67 low. If that is the case, we should now be rallying in wave iii which has the following initial projected endpoint:

 

iii = 1.618i = 30.28.

 

We are watching to see if all of wave (i) of iii maybe complete at the 19.16 high, and if that is the case we should be falling in wave (ii) which should retrace between 50 to 61.8{6662cb326f536db879050e93fbe8de36d93608a2a48b01f600643f4328fc39a1} of the entire wave (i) rally. We will provide those retracement levels when we believe all of wave (i) is complete.   

 

Trading Recommendation: Long crude with a put as a stop. Long Suncor.

 

Active Positions: Long crude with put as a stop! Long Suncor!                         

  

Thanks!

Captain & Crew