Gold And S&P500 C Wave Thunder (Part 2)

I’ve mentioned my background as a professional engineer in the energy business.  I enjoy the mathematics of Elliott Wave Theory (EWT).   Studying the wave is not a chore.  It’s a joy, especially when EWT suggests something big and bullish is about to happen, with gold!

Let’s take a clear look at the charts this fine Monday morning.

First, the S&P 500, via a ten minute bars chart:

I use a 10 minute bars chart to study the short term wave subdivisions.  I’m carrying 4 big S&P500 short positions, risking to 2094, and I will add a few more positions very soon. 

That’s because I believe the US stock market is poised to roll over and begin a huge C wave decline.

Here’s the longer term view:

The decline that my ewave analysis suggests is coming, would decimate investors, and stun the Fed.

A deflationary collapse has started, and the only island of safety is gold!

Here’s my shorter term ewave analysis for gold:

As of Monday Jan 26, gold was lower in the overnight session, eliminating our triangle option. The overnight low at the time that this Post was written was 1276.90. We mentioned in our last several Posts that the option for wave ^iv^ was a flat type correction.

The wave structure from the wave ^iii^ high of 1305.10 to the current low of 1276.90 is full of over overlapping waves which indicates correction to us. We are still within our 38.6% retracement zone also. Although we have rallied off the 1276.90, we are not sure whether all of wave ^iv^ has ended at that low.

Since the triangle option has been eliminated, there is still a chance that wave ^iii^ did not end at 1305.10!

Here’s the long term gold chart.  A major upside breakout is in play.  Note the penetration of the red downtrend line.  I’ve been watching for that even to happen for many months.  It ushers in the upside C wave!  I’m long 7 COMEX gold 100 ounce contracts, risking to $1225!

Also, gold stocks looks superb here, from my ewave perspective.  Here’s the long term HUI chart:

Here’s a look at the Newmont chart, from my perspective:

Watch that red trend line closely.  Newmont is very close to staging a major breakout, and it is followed intensely by institutional money managers, who could pour money into it very quickly.

Here’s the short term GDX chart:

With gold being lower we would expect that wave -iv- did not end on Friday at 21.62. We now expect to hit of .c.=1.618.a. projection of 21.14, which is close to our 38.2% retracement level.

We remain long all GDX positions, with stops at $19.87!         

Special Report For Gold-Eagle Ewave Riders!  Send me an Email to [email protected] and I’ll send you my free “Euro is making a massive Ewave bottom” chart report!   I’ll include a shockingly bullish chart for Kinross too, which I recently bought in size!

Thank-you

Captain Ewave & Crew!

Email: [email protected]

Website: www.captainewave.com

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