Gold & US Stocks C-Wave Thunder

With my background as a highly regarded professional engineer in the energy business, I enjoy the mathematics of Elliott Wave Theory (EWT).  As the highest scoring student at one of the original Elliott Wave courses put on by Robert Prechter decades ago, I fell in love with EWT very quickly.

EWT is a natural fit for engineers.  Watching the waves subdivide is like watching a great opera.  It’s a beautiful thing.

Unfortunately, one of my favourite markets, gold, began a horrible B wave down in 2011, and I had to start shorting gold and buying S&P 500 futures.

In recent months, as gold traded in the $1150 area, my wave studies began to hint that gold’s B wave decline could be over, and a dramatic C wave was about to begin.

C waves tend to be the most powerful EWT waves.  I had no idea what fundamental event would cause the C wave, but I covered my gold short positions and began the process of establishing longs.

It now appears that the Swiss central bank’s decision to let the franc trade relatively freely could be fundamental catalyst for Wave C.

Incredibly, my ewave studies have also recently suggested that US stock markets could be about to begin their own C wave, to the downside!  I think the S&P 500 is almost certainly ready to begin a shocking decline, to at least the 2008 lows!

Let’s take a look at the charts, from a Captain Ewave perspective.  First, the S&P500:

The horrific start to the year for US stocks is a wake-up call to stock market investors.  My analysis tells me the B wave top is in, and US stock market investors are going to get a terrible beating, a beating that will be much worse than the 2008 beating.

I use a 10 minute bars chart to study the short term wave subdivisions.  Here it is:

Let’s move on to the gold charts.  Here’s the long term chart:

I think it’s pretty clear where the C wave is going.  Note the various upside target scenarios that I have on the chart.

Here’s my shorter term analysis:

Stay focused on the $1295 target.  That’s my next short term price point.

If the ECB unveils a big QE program, I think my $1374 target becomes a “done deal”.

Here’s my take on the HUI chart:

My Ewave work might be meticulous, but it comes to me naturally. I’ve been outrageously bearish on gold stocks for several years.  Regardless, all my wave analysis tells me that now is the time to embrace gold stocks, and ride the golden C wave!

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Special Report For Gold-Eagle Ewave Riders!  Send me an Email to [email protected] and I’ll send you my free Barrick Gold 60 minute bars Ewave analysis chart!   I’ll include a shockingly bullish chart for Kinross too, which I recently bought in size!

Captain Ewave & Crew!

Email: [email protected]

Website: www.captainewave.com

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