june 2 morning post!

Captain Ewave Morning Post!

 

Please click here for the Bob Balan Ewave Basics Handbook… which the Captain highly recommends:

https://captainewave.com/wp-content/uploads/2021/04/Ewave-Basics.pdf

 

Don’t try to learn Ewave all in one day.  Focus on when the Captain is buying or selling, and the big wave counts.  

From there, add more detail to your study.

 

If any sub needs one-on-one help with the wave counts, just some handholding during market dips, or both, shoot us an Email we’ll work out a phone talk time slot.  Can buy a one-time slot or multi… Thanks, Captain & Crew 

 

CDNX: 

 

CDNX Chart:  

https://captainewave.com/wp-content/uploads/2021/06/ewjun221cdnx.png

Short Term Update:

 

The CDNX moved higher in yesterday’s trading session reaching a high of 974.91, closing at 972.04!

 

Longer term we are continuing to rally higher in wave (i) of -iii-. Within wave (i) we believe we completed wave $i$ of (i) of -iii- at the 999.86 high.

 

If that is the case then we are now dropping in wave $ii$, which has the following retracement levels:

 

78.6% = 895.63.

 

We now need to be on guard for the completion of wave $ii$ at the 902.30 low and the start of a major rally in wave $iii$. Our current short term challenge is to clear resistance above the sloping line connecting 968.07 and 962.05, which we are doing now.

 

We will provide our first projection for end of wave $iii$, when we believe all of wave $ii$ is complete.

 

Longer term all of wave -iii- has an initial projected endpoint of:

 

-iii- = 1.618-i- = 1592.50.

 

We should continue to rally sharply higher in wave .iii., which has an initial projected endpoint of:

 

.iii. = 1.618.i. = 1357.04.

 

Since the current projected endpoint for wave .iii. is lower than for wave -iii-, we should expect that wave .iii. will head to our second projected endpoint which is:

 

.iii. = 2.618.i. = 1784.50.

 

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

 

Active Positions: Heavily long the GDXJ and key juniors on the CDNX, as a long-term hold!  

 

GDX & Gold Stocks:

 

GDX 60 Min Chart:

https://captainewave.com/wp-content/uploads/2021/06/ewjun221gdx60.png

 

GDX Daily Chart:  

https://captainewave.com/wp-content/uploads/2021/06/ewjun221gdxd.png

 

Short Term Update:

 

The GDX was higher in yesterday’s trading session reaching a low of 39.88, closing at 39.49!

 

Within wave *iii* we are now rallying in wave ^i^ and within wave ^i^ we continue to rally sharply higher in wave -iii-, which has a current projected endpoint of:

 

-iii- = 2.618-i- = 41.70     

 

Within wave -iii-, we now be rallying in wave $iii$, which has an initial projected endpoint of:

 

$iii$ = 1.618$i$ = 42.70.

 

On our 60 Min Intraday Chart we have shown a possible internal wave count for all of wave $iii$.  This count could now be suggesting that wave !iv! is becoming a bullish triangle, which is still underway. We still do not like that wave !iii! is so short relative to wave !i!.

 

Based on what we have shown the next move in this market will be higher in wave !v! to $iii$ heading to our 42.70 projected endpoint, in spite of our concerns about the shortness of our current wave !iii! of $iii$.

 

The bottom line: Wave $iii$ count be subdividing even further, which is very bullish. For now we will leave this count as is but expect it will be modified.  

 

We should soon be heading higher again, to at least our next resistance of 41.13/41.81.

 

Longer term our first projection for the end of wave *iii* is:

 

*iii* = 1.618*i* = 78.66!           

 

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 will be updating our long term gold charts this week (May 17th):

 

Kinross(Updated May 25th,2021):

 

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 all of wave .ii. at the 6.09 low. We are now rallying in wave .iii. which has an initial projected endpoint of:

 

.iii. = 1.618.i. = 18.26.

 

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 May 21,2021):  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 all of wave -ii- at the 18.64 low. WE are now rallying in wave -iii-, which has the following initial projected endpoint:

 

-iii- = 1.618-i- = 48.35.

 

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% of the entre wave iii rally.

 

HUI (Updated May 20th, 2021): 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 updated projected endpoint:

 

iii = 4.25i=644.35.

 

Within wave iii, we completed all of wave (ii) at 247.99 and we are now starting to rally higher in wave iii, which has the following projected endpoint:

 

(iii) = 1.618(i) = 622.30.

 

XAU (Updated May 18, 2021): 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, and all of wave .ii. at the 128.08 low. We are now rallying in wave .iii., which as an initial projected endpoint of:

 

.iii. = 1.618.i. = 233.83.

 

Longer term, wave -iii- has a current projected endpoint of:

                                                 

-iii- = 2.618-i- = 201.84.

 

Since wave .iii. has a higher projection then wave -iii-, we would assume that wave -iii- will move to next projected endpoint which is:

 

-iii- = 4.25-i- = 288.57

 

Trading Recommendation: Long Term hold of all gold stocks and indices.

 

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/2021/06/ewjun221gold.png

 

Short Term Update: 

 

Gold was lower in yesterday’s day session reaching a low of 1894.50. In the overnight session we have moved higher reaching a high of 1907.00.

 

Gold continues to move higher to our next projected endpoint for all of wave $iii$ which is:

 

$iii$ = 2.618$i$ = 1938.10.

 

After wave $iii$ ends we expect a small wave $iv$ correction that retraces between 23.6 to 38.2% of the entire wave $iii$ rally. After wave $iv$ ends we expect a wave $v$ that rally that will complete all of wave -iii-, which has  current projected endpoint of:                                                               

 

-iii- = 4.25-i- = 1952.40. 

 

Next major resistance is at the 1966/1978 levels.

 

Longer term our first projection for the end of wave ^iii^ is:

 

^iii^ = 1.618^i^ =  2687.80.

 

Longer term our current projected endpoint for all of wave *iii* is:

 

*iii* = 1.618*i* = 2306.30.

 

We have higher projections also.

 

Trading Recommendation: Long gold. Use puts as stops. 

 

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

 

Silver:

 

Daily Silver Chart:  

https://captainewave.com/wp-content/uploads/2021/06/ewjun221si.png

 

Short Term Update:

 

Silver was higher in yesterday’s day session reaching a high of 28.70.

 

After that high was made we moved lower and that trend lower has continued in the overnight session as we have reached a low of 27.78, although we have since recovered some of those losses to currently be trading at the 28.03 level.

 

Longer term we continue to rally higher in wave (iii), which has the following initial projected endpoint:

 

(iii) = 1.618(i) = 51.52.

 

Within wave (iii) all of wave -ii- is complete at the 23.79 low and that we are now rallying in wave -iii-, which has an initial projected endpoint of:

 

-iii- = 1.618-i- = 34.22.

 

Within wave -iii-, we are still working on wave *i*.

 

We still expect to break above the 28.10/28.50 resistance level, after which we will be heading to our next resistance level at 29.91/30.35 levels.

 

Trading Recommendation: Long and using a put as a stop.

 

Active Positions: Long using a put as a stop!                                                                                                                                             

 

US 10 Year Bond Yield:

 

Daily US 10 Year Bond Yield Chart:

https://captainewave.com/wp-content/uploads/2021/06/ewjun221bond.png  

 

Short Term Update:                                                                      

 

The US 10 Year Bond Yield was higher in yesterday’s day session reaching a high of 1.639%. In the overnight session we moved lower reaching a low of 1.601%!

 

We are currently updating our US 10 Year Bond Yield Daily Chart to provide the internal wave count for all of wave (iii). We will continue to work on this.

 

US 10 Year Bond Yields made a multi-generational low at the 0.398% level and have started the long journey higher in a new bull market that will last decades. The era of low interest rates has now ended.

 

In the short term we are now rallying in wave (iii) in our first five wave impulsive sequence and within that sequence we are now rallying in wave (iii), which has an initial target of:

 

(iii) = 1.618(i) = 1.910%. 

 

After wave (iii) ends we expect a wave (iv) correction that retraces between 23.6 to 38.2% of the entire wave (iii) rally.

 

It appears that much higher inflation is now coming.      

                                                                                                                                                                                       

Trading Recommendation: Flat.

                                                                                                                    

Active Positions: Flat!

 

S&P500: 

 

Daily SP500 Chart:  

https://captainewave.com/wp-content/uploads/2021/06/ewjun221spd.png

 

120 Minute SP500 Chart:

https://captainewave.com/wp-content/uploads/2021/06/ewjun221sp120.png

 

Short Term Update:

                                                             

The SP500 was initially higher in yesterday’s trading session reaching a high of 4234.12, although we closed marginally lower at 4202.04. In the overnight session the SP500 Futures are up by about 3 points.

 

All of wave -v- of (iii) is now complete at 4236.39 high. We are now falling in wave (iv), which has the following retracement levels:

 

23.6% = 3889.53;

38.2% = 3674.95.

 

The expected drop in wave (iv) should be between 300 and 550 points.

 

It is still to early to determine which type of corrective pattern wave (iv) is going to develop into.

                                                                                                                                                                                                                                       

Trading Recommendation: Short with calls as stops.

                                                                                   

Active Positions: Short with calls as stops!

 

USDX:

 

Daily USDX Chart:  

https://captainewave.com/wp-content/uploads/2021/06/ewjun221usd.png

 

Short Term Update:

 

The USDX was initially lower in yesterday’s day session reaching a low of 89.65. After that low was made we moved higher and that trend higher has continued in the overnight session as we have reached a high of 90.24!

 

On the Intraday Chart we appear to have a bearish triangle formation which could be nearing completion. If this observation is correct then once this triangle ends we should see the USDX thrust lower.

 

 The triangle likely started at the 90.91 high and may be complete at the 90.24 high.

 

We continue to fall in wave -v- and are starting to get close to our minimum target for its completion at the 89.17 low.

 

Projections for the end of wave -v- are:

 

-v- = 89.17;

-v- = 1.618-i- = 84.38;

-v- = 0.618(length of wave -iii-) = 0.618(100.97-89.17) = 86.18;

-v- = 1.618(length of wave -iii-) = 1.618(100.97-89.17) = 74.38.  

 

The continuing drop in the USDX should support our rallies in gold, silver and the GDX.                           

                                                                                                        

Trading Recommendation: Flat.

 

Active Positions: Flat! 

 

Crude Oil and Suncor:

 

Daily Crude Chart:

https://captainewave.com/wp-content/uploads/2021/06/ewjun221oil.png  

Short Term Update:

 

Crude was higher in yesterday’s day session reaching ahigh of 68.87. In the overnight session we have moved sideways currently trading at the 68.38 level.

 

Longer term we continue to rally sharply higher in wave (iii), which the following longer term projected endpoint:

 

(iii) = 1.618(i) = 93.96.  

                                                                                                                                              

Wave $i$ of (iii) is now complete at the 67.98 high and we are now falling in wave $ii$ which has the following retracement levels:

 

50% = 50.81;

61.8% = 46.76.

 

Within wave $ii$, we believe that all of wave ^a^ ended at 57.25, as we continue to rally higher in an incomplete wave ^b^. After wave ^b^ ends we expect another drop in wave ^c^ to complete all of wave $ii$.

 

Suncor: We continue to rally in wave iii which has the following initial projected endpoint:

 

iii = 1.618i = 30.28.

 

Within wave iii it now looks like wave -i- ended at 19.94 and wave -ii- at the 16.29 low.

 

We continue to rally higher in wave -iii-, which has a projected endpoint of:

 

-iii- = 1.618-i- = 31.29.

 

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