Technical Analysis Of Major Markets

Gold

As you can see on the attached Daily Gold Chart, it appears that wave *iii* could be complete at the 1167.90.

We had a *iii*=2.618*i* projection of 1164.50.

We cannot rule the possibility that with all of the market turmoil that wave *iii* will extend and head towards our *iii*=4.236*i* projection of 1217.30.

On the Intraday Chart, from the 1167.50 high, gold appears to be working on a small triangle formation. At the moment the triangle formation looks like:

.a. = 1148.60;

.b. = 1165.00;

.c. = 1152.00;

.d. = 1162.50, if complete;

.e. drop is next, to complete all of the triangle formation.

This triangle looks too small to be all of wave *iv*, however. Once this triangle formation ends, expect gold to thrust higher.

With the drop in the S&P we think a run to the 1217.30 level is the likely end of wave *iii*.

We are long 20 positions, risking to 1072!

CRUDE OIL

It feels like there is no end in sight in the drop in crude, as we reached a low of about 37.75.

We believe that a major low is near and that it could end with a big spike lower, almost like gold, as is shown on the attached Daily Crude Chart.

On the Intraday Chart, we can see a possible ending diagonal triangle, which could be signalling the bottom.

We bought 3 more positions at 1.

We are long 5 positions at 42.35, with 42.00 puts, and 3 at 41!                                                                                 

S&P500

We told you that once our wave -v- diagonal triangle ended that, the drop in the S&P was going to be sharp.   It certainly was!

Wave B ended at 2132.82. Although we struggled (a bit) with finding the top, we have now been handsomely rewarded with all of our S&P short positions.

All of the attached Charts tell the story, and in the big picture we expect that the S&P will be heading back to its wave A low of 666.79!

What we know so far is the following:

-i- = 2063.52;

-ii- = 2101.99;

-iii- is now.

Our projections for the end of wave -iii- were:

-iii- = 2.618-i- = 1920.62;

-iii- 4.236-i- = 1808.44;

-iii- = 6.25 -i- = 1668.87

It came in at about 1867.  The bottom line:

We shorted 3 positions at 2063.00, 5 at 2050.00, told subscribers to do the same, and booked all 8 at huge profits, in the 2025 area at the end of wave -iii-! 

We are looking to short again near our projected top of –iv-, and expect to pull the trigger within days.

USDX

Unfortunately our execution on this market was poor, and we got stopped out.  

That happens, and we made 50 times more money on the SP500 trade than we lost on the USDX, so we have no complaints.

Much more importantly, we are currently working on the assumption that wave ii ended at 100.26 and that the USDX is heading to new lows below 70.00.

So far it looks like within wave iii down we have the following:

-i- = 93.27;

-ii- = 98.41;

-iii-:

.i. = 95.95;

.ii. = 97.10

.iii. down is now.

A projection for the end of wave -iii- is:

-iii-= 1.618-i- = 87.10!

NATGAS:

NG is looking like our short term analysis for this market is about to be eliminated. We have been working on the assumption that we were in a wave .b. triangle that was all part of a wave -iv- correction. A break below 2.64, would eliminate our current wave .b. triangle analysis.

Regardless, we are long 5 positions, risking to 2.63!

CRB INDEX

Here is a very interesting long term Ewave analysis of the quarterly bars CRB index chart.

We are expecting dramatic action to begin to the upside.  Ray Dalio, head of Bridgewater, the world’s largest hedge fund, believes the Fed will ease by announcing QE4!

That could be the catalyst that launches the CRB index to above 473! 

XAU/HUI/GDX

Note the beautiful wedge pattern on this long term XAU chart.  The crash in the SP500 did create some impulsive wave behaviour in a lot of gold stocks, and that’s a concern, but only a minor one at this point.

We are long the GDX, ABX, KGC, NEM, CRJ, and TSX:XGD with no stops!!!!!

********

Special Offer For Ewave Enthusiasts:  Send us an Email at [email protected] and we’ll send you the Ewave analysis for silver, and for our favourite silver stock!

Email: [email protected]

Website: www.captainewave.com

Risk: CAPTAINEWAVE.COM IS AN IMPERSONAL ADVISORY SERVICE. AND THEREFORE, NO CONSIDERATION CAN OR IS MADE TOWARD YOUR FINANCIAL CIRCUMSTANCES. ALL MATERIAL PRESENTED WITHIN CAPTAINEWAVE.COM IS NOT TO BE REGARDED AS INVESTMENT ADVICE, BUT FOR GENERAL INFORMATIONAL PURPOSES ONLY. TRADING STOCKS DOES INVOLVE RISK, SO CAUTION MUST ALWAYS BE UTILIZED. WE CANNOT GUARANTEE PROFITS OR FREEDOM FROM LOSS. YOU ASSUME THE ENTIRE COST AND RISK OF ANY TRADING YOU CHOOSE TO UNDERTAKE. YOU ALSO AGREE TO BEAR COMPLETE RESPONSIBILITY FOR YOUR INVESTMENT RESEARCH AND DECISIONS AND ACKNOWLEDGE THAT CAPTAINEWAVE.COM HAS NOT AND WILL NOT MAKE ANY SPECIFIC RECOMMENDATIONS OR GIVE ADVICE TO YOU OR ANY OF ITS CLIENTS UPON WHICH THEY SHOULD RELY. CAPTAINEWAVE.COM SUGGESTS THAT THE CLIENT/MEMBER TEST ALL INFORMATION AND TRADING METHODOLOGIES PROVIDED AT OUR SITE THROUGH PAPER TRADING OR SOME OTHER FORM OF TESTING. CAPTAINEWAVE.COM, ITS OWNERS, OR ITS REPRESENTATIVES ARE NOT REGISTERED AS SECURITIES BROKER-DEALERS OR INVESTMENT ADVISORS EITHER WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION OR WITH ANY STATE SECURITIES REGULATORY AUTHORITY. WE RECOMMEND CONSULTING WITH A REGISTERED INVESTMENT ADVISOR, BROKER-DEALER, AND/OR FINANCIAL ADVISOR. IF YOU CHOOSE TO INVEST WITH OR WITHOUT SEEKING ADVICE FROM SUCH AN ADVISOR OR ENTITY, THEN ANY CONSEQUENCES RESULTING FROM YOUR INVESTMENTS ARE YOUR SOLE RESPONSIBILITY.

ALL INFORMATION POSTED IS BELIEVED TO COME FROM RELIABLE SOURCES. CAPTAINEWAVE.COM DOES NOT WARRANT THE ACCURACY, CORRECTNESS, OR COMPLETENESS OF INFORMATION AVAILABLE FROM ITS SERVICE AND THEREFORE WILL NOT BE LIABLE FOR ANY LOSS INCURRED. DUE TO THE ELECTRONIC NATURE OF THE INTERNET, THE CAPTAINEWAVE.COM WEBSITE, ITS E-MAIL & DISTRIBUTION SERVICES AND ANY OTHER SUCH "ALERTS" COULD FAIL AT ANY GIVEN TIME. CAPTAINEWAVE.COM WILL NOT BE RESPONSIBLE FOR UNAVAILABILITY OF USE OF ITS WEBSITE, NOR UNDELIVERED E-MAILS, OR "ALERTS" DUE TO INTERNET BANDWIDTH PROBLEMS, EQUIPMENT FAILURE, OR ACTS OF GOD. CAPTAINEWAVE.COM DOES NOT WARRANT THAT THE TRANSMISSION OF E-MAILS, OR ANY "ALERT" WILL BE UNINTERRUPTED OR ERROR-FREE. CAPTAINEWAVE.COM WILL NOT BE LIABLE FOR THE ACTS OR OMISSIONS OF ANY THIRD PARTY WITH REGARDS TO CAPTAINEWAVE.COM DELAY OR NON-DELIVERY OF THE CAPTAINEWAVE.COM NIGHTLY EMAILS OR "ALERTS". FURTHER, WE DO NOT RECEIVE ANY FORM OF PAYMENT OR OTHER COMPENSATION FOR PUBLISHING INFORMATION, NEWS, RESEARCH OR ANY OTHER MATERIAL CONCERNING ANY SECURITIES ON OUR SITE OR PUBLISH ANY INFORMATION ON OUR SITE THAT IS INTENDED TO AFFECT OR INFLUENCE THE VALUE OF SECURITIES.

THERE IS NO GUARANTEE PAST PERFORMANCE WILL BE INDICATIVE OF FUTURE RESULTS. NO ASSURANCE CAN BE GIVEN THAT THE RECOMMENDATIONS OF CAPTAINEWAVE.COM WILL BE PROFITABLE OR WILL NOT BE SUBJECT TO LOSSES. ALL CLIENTS SHOULD UNDERSTAND THAT THE RESULTS OF A PARTICULAR PERIOD WILL NOT NECESSARILY BE INDICATIVE OF RESULTS IN FUTURE PERIODS. THE RESULTS LISTED AT THIS WEBSITE ARE BASED ON HYPOTHETICAL TRADES. PLAINLY SPEAKING, THESE TRADES WERE NOT ACTUALLY EXECUTED. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED TRADES DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE OVER OR UNDER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS SUCH AS LACK OF LIQUIDITY. YOU MAY HAVE DONE BETTER OR WORSE THAN THE RESULTS PORTRAYED. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. NO INDEPENDENT PARTY HAS AUDITED THE HYPOTHETICAL PERFORMANCE CONTAINED AT THIS WEBSITE, NOR HAS ANY INDEPENDENT PARTY UNDERTAKEN TO CONFIRM THAT THEY REFLECT THE TRADING METHOD UNDER THE ASSUMPTIONS OR CONDITIONS SPECIFIED HEREAFTER. WHILE THE RESULTS PRESENTED AT THIS WEBSITE ARE BASED UPON CERTAIN ASSUMPTIONS BELIEVED TO REFLECT ACTUAL TRADING CONDITIONS, THESE ASSUMPTIONS MAY NOT INCLUDE ALL VARIABLES THAT WILL AFFECT, OR HAVE IN THE PAST AFFECTED, THE EXECUTION OF TRADES INDICATED BY CAPTAINEWAVE.COM. THE HYPOTHETICAL RESULTS ON THIS WEBSITE ARE BASED ON THE ASSUMPTION THAT THE CLIENT BUY AND SELLS THE POSITIONS AT THE OPEN PRICE OF THE STOCK. THE SIMULATION ASSUMES PURCHASE AND SALE PRICES BELIEVED TO BE ATTAINABLE. IN ACTUAL TRADING, PRICES RECEIVED MAY OR MAY NOT BE THE SAME AS THE ASSUMED ORDER PRICES.