Daily Archives: May 8, 2018

Gold Intraday Rally Review

In April gold created a spike to the upside and then proceeded to crash or go into a bearish phase. As soon as the May rally started gold opened with wave structures that overlap each other. This also makes it a candidate for a triangle. Gold stocks acted lethargic to this bullish phase, so they are not impressed with gold’s recent move.  This sure could make the $1302 just a temporary resting spot as another leg down should follow. My 5 wave decline in Minute degree may be a bit too large, but that can always be adjusted later on. I will keep my Intraday postings during the week, (Tuesday-Friday) as it is critical to spend time on my larger degree pictures as well.  Any site will give you short term trade setups as they are as popular as bathing suits in the summer!

No way will I spend my time giving readers short term trade setups as that is not what I use the EWP for. Any kid with the EWP book and a ruler, can give you short term trade setups.  Flipping numbers and letters around like we flip hamburgers is not my cup of tea.

So for now gold is acting bullish but this will not last as that $1300 price level should still get crushed!

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Mini DJIA Intraday Chart Update.

My Intraday market reports are going to slow down a bit. There is no sense for me to post intraday charts on the weekends including Mondays. During that 3 day time span I will keep my updates to Daily, Weekly and Monthly chart analysis only.  It is impossible to constantly post intraday charts when there has not been sufficient time for the wave pattern to play out. My concern is always the bigger picture which is Primary, Intermediate and Minor degree levels.

I will no longer use more than three colors to separate degree levels as 3 will do for anything we are going to use in a Cycle degree world.

In over 3 months the DJIA still has a downward bias that is very hard to ignore. The bulls are ignoring it as they are looking to buy on the “Dips”. Any analyst that calls for support is bullish in a bearish world which at this time still is the majority. “Value” hunters are having problems in finding opportunities which stands to reason when the markets have been at world record highs for 9 years!

As I post there was still upside left, that still could slice through my top trend line. All the bearish market moves so far, do not indicate that there has been a strong enough bottom to justify another huge leg up in some mythical moon shot still to come. Think of Cycle degree as the Mount Everest peak, SC degree as the moon, and last but not to be forgotten GSC degree, would be Mars!  🙄

At this rate it could take a long time before we know what pattern we are going to get first in a Primary degree bear market. For a flat the opening could just be a zigzag in Intermediate degree which would land on the “A” wave in the Primary degree than I’m after. I will try different wave counts without notice, as using a different wave count we are posting it for elimination!  In a few years time these intraday chart moves will blend back into the woodwork and you will never see them again.  All charts I post are filed on my home hard drive, and is also automatically backed up with a Time Machine setup, so I can go back and take second looks on most intraday charts.

So far it looks like a diagonal decline, but they can smooth out like gold stocks eventually did, so for the short term we could miss a few surprise counter rallies. Most of the time it’s just stops that are getting hit. Every trader has been brainwashed into using stops, so the sell orders are piling up below present prices.  I have three different patterns to work with so until they smooth out a bit some “Cosmetic Wave Counting” will be necessary. Eventually “all” cosmetic wave positions will be doomed.  Cosmetic wave counting is all about those experts that never have gone back in history, to double check the structural integrity of the wave counts.

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VIX Daily Chart Review:

The VIX is one place that trend lines and wedges can be useful. When I talk about a potential bear trap in the VIX, then you have to invert that thinking when looking at the general markets.  As we can see there are many spikes to the upside and also many spikes to the downside. Our recent large spike to the downside made the pattern look great as a correction.  I’ve seen these spikes before where the VIX wanders down the entire spike and matches the end of the spike, or even goes a bit lower.  In this case, $10 could get hit again, which inversely means that stocks can still see some upside for s few more days.

So far another falling wedge can be drawn, which also means that the VIX could be setting up for another surprise bullish move.

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