Major Markets Via E-Wave Analysis

Gold

We can now likely conclude that wave *ii* of .c. in gold has ended at 1178.20, a 20 tick failure on our charts, meaning we were targeting 1178, and gold went 20 cents shy of that.

Gold was sharply higher in the overnight session, reaching 1196.00. On the intraday chart, the rally from the 1178.00 low is impulsive looking, so we should expect higher prices today.

As this rally continues we should be able to provide projections for the end of wave *iii* of .c.

Our targets for the end of all of wave .c. are 1251.30 and 1302.50!

We have also raised our stops to just below the wave .b. low of 1168.40 to 1168.30

We plan to take profits at the end of wave .c.

No change to our current 17 long positions, risking to 1168.30

CLAUDE RESOURCES (CRJ.TO)

For those trading Claude, our bellweather C wave stock, we would expect that this wave .c. rally in gold should see CRJ reach our 0.92 target.

The C wave advance should turn this key stock into a “thirty bagger”.  CRJ continues to act the way we want to see all gold stocks acting, as the C wave really builds momentum!

Crude

Crude was sharply higher in the overnight session, reaching a high of 60.52, which is now within our 50 to 61.8% retracement range for our wave ^b^ of *iv* rally.  

WE did suggest that this might happen in our last End of Day Post.

On the intraday chart, from the wave ^a^ low of 58.15, we can see the internal wave structure of wave ^b^ as follows:

!a! = 59.13;

!b! = 58.75;

!c! = 60.52, if complete, to complete all of wave ^b^.

Note that !c! = 1.618!a! = 60.34, !c!=2.618!a! = 61.31. Crude has reached the 60.34 target.

It is still possible that wave *iv* could become more complex, or even become a triangle.

Our current option is one of several. Upon completion of wave ^b^, crude will fall in wave ^c^ to at least the wave ^a^ low of 58.15 to complete all of wave *iv*, unless wave *iv* becomes a triangle.

S&P500

The S&P500 was sharply lower in the overnight session, as our expected wave .b is likely now underway.

Wave .b. is expected to retrace between 50 to 61.8% of the wave .a. rally. With wave .a. ending at 2117.76, then the retracement levels are:

50% = 2092.40;

61.8% = 2086.41.

We will short 5 positions at 2065. Stops will be indicated when filled.

USDX

 

The USDX was lower in the overnight session, reaching 94.42, at the time that this Post was being written. 

In our Special Mother’s Day Post for subscribers, we talked about a number of options for the USDX. Those updated options are: 

Option 2: Wave *iii* of .c. ended at 94.48 and likely all or most wave *iv* at 95.54. We are now heading lower in wave *v* to complete all of wave .c. We have a projection of .c.=1.618.a.=90.83.

Option 3: Wave *iii* is still underway and we have a projection of *iii*=1.618*i*=93.70.

Option 2 appears to be what happened, as we have satisfied the minimum requirements for a completed .a., .b., .c. drop from 100.71 to 93.96, as shown on the attached 240 Min Chart.

The only issue is that we have is we have a .c.=1.618.a. projection of 90.83, which we are still well above. So we think that Option 3 could be still valid, and also that wave *iv* did not end at 96.10, but is becoming a triangle.

If wave -iv- did happen to ended at 93.96, then the next big event will be a rally in wave -v- to at least the wave -iii- high of 100.71.  

All of our preferred count for wave -iv looks like: 

.a. = 94.87;

.b. = 100.26;

.c.:

*i* = 97.18;

*ii* =98.68;

*iii* = 94.48;

*iv* = 96.09, if complete. Might become a triangle;

*v*= 93.97, if complete, to complete all of wave .c. and -iv-. If wave -iv- is complete, then we should expect a rally in wave -v- to at least the wave -iii- high of 100.71. 

We are starting to lean a bit to the wave *iv* triangle option. Only a break of 96.09 would eliminate this option.

NG (NATURAL GAS)

NG dropped a little further in the overnight session reaching 2.78. If wave .ii. is becoming a simple zigzag formation then it likely looks like:

^a^ = 2.78;

^b^  is now. Wave ^b^ should retrace between 50 to 61.8% of the wave ^a^ drop which would be 2.86 and 2.87, respectively.

^c^ drop to go.

Our wave .ii. retracement levels are:

50% = 2.71;

61.8% = 2.65

Wave .ii. should take the rest of this week to unfold.

We will buy 5 NG at 2.67, risking to 2.47!

HUI/GDX

We expect higher prices in the HUI/GDX, with gold now moving higher in wave *iii* of .c..

Our projection for the end of our second wave -c- remains unchanged as:

-c- = 1.618-a- = 21.77

From there, we expect a surprising sell-off that could shock a lot of gold stocks investors, but not to worry, as the triangle ultimately gets resolved with a huge C wave advance higher.

We remain long all GDX positions, with stops at 18.37!

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Website: www.captainewave.com