OIL CHARTS

OIL CHARTS

INDEX CHARTS

INDEX CHARTS

PRECIOUS METAL CHARTS

PRECIOUS METAL CHARTS

STOCK CHARTS

STOCK CHARTS

CURRENCY CHARTS

CURRENCY CHARTS

ENERGY CHARTS

ENERGY CHARTS

 

Category Archives: Euro

Euro 2001-2018 Review

Just like the US dollar is in a huge bull market so is the Euro as it makes up about 59% of the USD basket. Gold investors that think another huge leg up in gold is going to happen are ignoring the fact that the Euro was just in a bear market rally and new record lows will happen, by this fall. This would land us on a Primary degree wave 3, followed by yet another bear market rally before we bottom at a Supercycle degree “A” wave bottom sometime by 2041 or three years sooner. The Euro peak matches oils peak and not gold, so we have to be aware of this 3 year difference.  My last weeks Market Vane report only shows 46% bulls present which is still far from any extreme I may be expecting. Even gold is about the same so it’s not just one thing I rely on. All my futures wave counts are in what I call, “The Wave Pool”, which are all in-house created indicators that only a few one on one people get to see in any detail.  I also built a “Ratio Pool” and a “50-200-day MA Pool”.

Hits: 2

Euro Weekly Chart: Death Cross Update

I have made changes with some of my locations, but in the end the same wave 3-4 in Intermediate degree stays the same. Any wave 4 counter rally is a bear market rally and to confirm that, the Euro will eventually hit a new record low. It is the US dollar that turned into a safe haven currency, which will send the USD soaring in a massive bull market that only the deflationists may understand.EWI forecast of a deflationary crash is coming true and his bullish US dollar is also coming true.

The sad part about it is that this planet is going to suffer a massive deflationary presures the likes no one alive has every witnessed. Every single asset class including gold will suffer severe price shocks in the next 3 or so years that will boggle our minds.  I will not spend my time counting all the little intraday waves as I’m not a day traders and never will be. All I need is three degree levels as they spawn huge moves where someone can make some decent money on.

Look back up and we can see our first Death Cross and the results of this DC. I’d say without a doubt 2014 would have been an excellent short bet  for those paying attention.

Once the EURO soared again in 2017 it took a long time for the Golden Cross to form, but this is always the case. On the Euro daily chart the Euro Death Cross has already happened and now on this weekly chart another Death Cross is ahead of us. Our CAD is in the same leaking boat and so the EU zone is not the only currnecy that’s going to take a hit.

The commercials are not all that distorted, and my Market Vane report still needs to get rid of more Euro bulls, so much more downside to the Euro should happen.

We are in the same situation as the top of 2008, when every asset class will fail except for the US dollar. In 2008 the USD soared as everything crashed. This was a brief intense 8 month horror show, but this time we could end up with a 2 year decline doing the same thing. The world is in a massive real estate bubble never before seen in history, and those rich people that think that real estate prices are going to keep flying at 10% a year are going to get shocked, when no more buyers show up!

In Canada, our real estate bubble has already burst, and it will get much worse in the long run.  Nobody is talking about the world fertility crash, which shocked me the first time I researched it. Massive deflation is in our future, not massive inflation. As usual the US FED is still fighting inflation making matters far worse.

Printing money will never solve this problem as it is part of a much bigger 30 year cycle and even 100 year cycle. Little Iceland took down the entire world in 2007-2008, so it will not take much for any other country to implode as well. Can gold crash to below $800? You bet it can, as that will be just the opening shot. Facebook is another example in what’s coming, and all those gold investors will get the shock of their lives once gold breaks that $1047 price level. I have a silver 10 ounce coin bet on it and once it crosses this red line, my gold cycles consulting fees will explode. No money manger will get to see my gold cycles research unless they drop a pure silver 10-Troy ounce coin in my hand first, and that is only for a 2-3 hour session!

 

Hits: 5

Euro Monthly Chart Death Cross Location!

At this time my Cycle degree wave 3 peak may be questionable  if that location can remain as I may have to switch the Euro to a 4th wave top in Cycle degree. I need time to think on that but I sell have lots of time to think on it some more. The entire idea of a 5 wave decline in Primary degree doesn’t need to get changed just yet, for any reason.

In other words don’t fret if I talk about a big degree change in the Euro as it would have little impact on any present wave count that needs to get done. How this futures cash chart reacts and looks like in the Forex world, it may not react the same. This Euro chart is still bearish because of the 4th wave rally is just another bear market rally and “B” wave bottom might get completely retraced by the end of this year.

It now doesn’t take Elliott Wave rocket science anymore to figure out that the Euro is in deep trouble. What I say about the Euro is inversely related back to the US dollar. If the Euro is in a bear market then the USD is still in a bull market. This fact can not be undone as the Euro is not going to get kicked out of the US dollar basket any time soon.

The Death Cross on this Euro monthly chart, has past but I don’t think I have to remind readers anymore how bearish these Death Cross indicators are, as the 50-day MA line is going to lead the Euro down.  Hey, our CAD is going to implode right along with you guys so don’t think we are in some kind of bastion of safety. Canada is in serious trouble when all the real estate markets implode. This whole structure of waves looks like it is up too high, and you are right! These are diagonal waves to were the final count down can be a very long extension that will just boggle the mind.

All those gold investors will get burnt in the process because they are waiting for the Euro and our CAD to soar. You can wait a long time for that as every bear market rally retraces itself and heads to a new low. How many major bullish phases did the Euro have and each one completely retraced itself.  Our present Euro is  in another bear market rally so much more downside pain will come.

The run of Euro holders into the dollar continues as the US dollar becomes safe-haven as the world currencies implode.  A rising dollar is deflationary  and this in turn kills gold as an investment asset. There is a time to hold but there is also a time to become a trader as violent swings occur where investors get shredded becuase they stayed invested to long.  This world is not safe to Buy& Hold anymore as it is a Buy-Low sell high world that can generate better returns if you know how to bet the markets in either direction.  Having the ability and courage to go short at specific times always allows you to seek opportunities and major reversals. I will focus on the gold sectors as that is what I understand as I have experienced catching the falling GDX in 2008. Wild and moving markets is where I feel comfortable with as the trading opportunities are going to be fantastic if we are on the ball and are prepared at all times.

Commercials are still net short the Euro but not at any real extreme just yet.

 

 

Hits: 9

Euro Daily Chart: Return Of The Bear?

I believe that the Euro finished a “C” wave bull market, charging up to a 4th wave peak in Intermediate degree. To confirm that this Euro peak was just a bear market rally then the Euro has to retrace everything, back to the point of orgin. This would be below my black line.   There may still be some counter rally moves, but eventually the Euro will implode. Our CAD will implode as well, so we  are in the same sinking ship, so to speak. We also finished a Death Cross which most investors ignore, or don’t even know about. We have tons of tools in our tool box, to draw every conceivable indicator we want,  which I give value in using the 50-200-day MA to confirm my wave counts with. After a while we won’t need them, and we can put them back in the box for many months.

Gold bugs need the Euro to go up, to support their bullish claims. They also need for the Canadian dollar to soar, but we know that’s not going to happen any time soon. I have to double check on a monthly chart, but we should end on a wave 3 in Primary degree. This move could be very violent and fast so we have to plan for a reversal once it sets up.

Idealy I want the US Dollar to break a new record high as well, even just for a second!

Hits: 11

Euro Weekly Chart: Bear Market Impending Death Cross

The majority willl never know what a bear market rally is, as the bulls only care that it keeps going up.  All trends must come to an end which the Euro has started to do a month ago. To help the gold  bugs to be on the right side, they need the Euro to go up, not down.  Arguing about if the Euro is on a big bullish path or on a much larger bearish path is futile because the markets are “Always Right” It’s our opinions or premises that are always wrong.

Bear markets always retrace their entire bullish move from where it started or originated from. That would be close to the bottom wedge line.  When that happens then the Euro has confirmed that  it’s present bull market was nothing but a fake. Since the 2008 peak the Euro has done this a minimum of 3 times, and is set to do it again.  The anticipated Death Cross (DC) on this Euro weekly chart is next in line but it may take well over 50 days for us to find out.

On the daily chart the Euro Death Cross has already been hit so I know more bearish downside is still to come. Rats are jumping ship and heading over to a new Titanic called the US dollar .  The US dollar is acting out its safe-haven status which contains two Golden Crosses already. Counting the crossings is the key as they will alternate in a DC, GC, DC fashion. There was a huge spread between the 50 and 200 day lines. The 50 day average has come up and sliced through the 200 day line creating a Golden Cross.

What should come next on this weekly chart is the dreaded Death Cross. It should speed up the Euro decline, with our Canadian dollar being on the same path.  After the Euro tanks to new lows, I expect another long counter rally which will also end up being a Euro bull trap. Spotting the Golden Cross bull trap is pretty obvious at this point, but in the end it may take into the fall or March 2019 to play out.

Hits: 8

Euro Weekly Chart Bear Market Update

 

Many may think that the Euro has nothing to do with the price of gold, but I think they are totally wrong with this type of thinking. Just go back to the 2011 Euro peak, match it up to the 2011 gold peak, and we have some very good correlation.  The Euro had no problem in joining the bear party at that time, but recently the experts were very bullish on the Euro as well.  When we look at the big trend line, nothing suggests a big Euro bull market is coming.  Participants don’t know what a bear market rally is, as they get excited by any rally at all.

A bear market rally always retraces its entire bullish sequence, from it’s point of orgin.  It only needs to do this by the slimmest of margins to turn the bull market, into just another bear market rally.

If we look back up we can count 4 bear market rallies that have all been retraced, trapping all the bulls each time. Ignoring this large trend line is a huge mistake, which I don’t like to get trapped in.

I don’t think any serious trader wants to get caught in a big bull trap, but the speculators have a natural knack for this kind of a trap. Elliott wave experts have a bullish mood towards gold, but the Euro and the USD refuses to play ball. Overlapping declining waves are diagonal wave patterns which are present in all commodities. Even my 4th wave rally has dipped into wave 2 in Intermediate degree, and worse yet, it also dipped into wave 2 in Primary degree.

If you think that the Euro cannot sink dramatically, then just look at the year long decline in 2014. This also matched the crude oil and gold crashes. It’s hard to except the idea to be bearish, when the herd is bullish, but this is what the EWP is supposed to be good for. It might take the rest of the year, but when this Euro breaks to a new record lows, we should expect another massive bullish phase. This will also be another big bear market rally. To say that gold and oil are going to soar with increasing trade war tensions, are ignoring the historical facts. A recession is coming and it’s only a matter of time before the greater “herd” see it as well. When a large part of the herd suddenly realize, or see the same thing, then usually a mini panic ensues.

Hits: 18

The Euro Takes A Beating!

This morning the Euro spiked up and then rapidly reverse and then plunged. That would be a surprise if we were very bullish on the Euro already. I have been bearish on the Euro for sometime already so this dip is no real surprise. To confirm that the Euro rally was just another fake, it would have to retrace the entire May bottom.  We see bear market rallies all the time at the smaller degree levels, but happens at a smaller scale, also happens on the bigger degree scales.

The US dollar also reacted, so it’s not an isolated Euro event.  I doubt that Italy has enough clout to bring the Euro down, but the analysts are determined to give you a reason for the decline if it’s right or not!  The world would end if analysts down find you a reason for every little price move in any direction.   I won’t be satisfied until that May 29th low is completely retraced.

Hits: 6

Euro Intraday Rally Update

Short term the Euro could still make a higher high, but longer term it should resume its bigger bearish trend. I would be a lot more bullish on the Euro if it were not for the commercial traders short positions. I kept this Euro wave count like my previous Euro posting, but the Euro may not push to the next higher high. The Euro may turn south sooner than we think and resume its bearish trend.

With all the risk factors increasing around the world we would expect the gold price to soar, but in order for gold to soar the Euro needs to soar as well.  Even our CAD is getting beat up and is still pointing south,  so I don’t see the two main inverse currencies supporting a big gold bullish move at this time.

Hits: 9

Euro Intraday Rally Update

The Euro has been in a rally but there still may be one upside move left to go, before it resumes it’s bearish trend. I have just started a wave 1-2 count in Minute degree, which would extend wave 3 in Minor degree.  The Euro could keep right on heading south from here,  just like the US dollar may have one more small leg down, before it also starts to turn back into it’s bullish trend. Even with this Euro rally and US dollar decline, gold has moved little. Once the Euro resumes it’s bearish trend then I can see gold head south as well.   Commercials are still net short the Euro so until that changes, I will remain bearish on the Euro.

Hits: 8

Euro Weekly Chart Bear Market Update

At this time nothing has really forced a radically new wave count as the bearish mood continues. The top trend line now had a third peak we can use and so far the Euro does not look like it wants to turn and soar to the moon. They majority are saying that gold and the Euro will soar, but the exact opposite is what is happening.  Since the 2015 the Euro has developped and expanded pattern followed in 2017 with a strong looking impulse.

The same bear market rally logic applies to the Euro as well. It to must completley retrace it’s 2017 bullish move to confirm that a bear market rally has occured. The Euro runs inversely to the US dollar, so the Euro must go up for gold to follow. This has not happened as the Euro is heading south instead. We are in a small correction at this time and there still may be more to go, but the Euro will resume it’s downward trend.

Commercials have bearish Euro positions, so until that changes this Euro bearish phase is still in effect.

Hits: 13

The Euro Keeps On Crashing: Daily Chart Update.

The Euro counter rally did not last very long at all. We will see if this impulse decline has more power to it than most analysts are expecting. The 6 currencies that are inside the US dollar basket act inversley to the US dollar with this Euro being one of them. It also all realates back to gold as gold and the Euro have traveled together many times in the past.  The bullish phase in 2017  was a “C” wave bull market with 5 waves in Minute degree.  At 1.16 the Euro can put up some resistance to the decline but this should only be a temporary resting spot as everyone screams, “Support”.

Price support means little, but wave pattern support is everything, from my Cycle degree perspective.  I may have to adjust the wave count decline, as I’m starting this run as a wave 3 extension. We have an open gap below and this should get hit in this bearish decline.  Until the Euro decline has completely played out, gold will keep heading south. Gold has crashed $70 already and it’s not finished.  I’m sure the COT reports still show the commercials in a Euro short position, and until that starts to shift dramatically the Euro will keep declining. Most investors have no clue what the difference is between a real bull market and a bear market rally. “Every” bear market rally retraces itself by 100%. It’s the big bear market rallies in Primary and Intermedeate degree that fool us the most.

The Euro started it’s bear market in 2008 right along with oil, with both ending on Cycle degree wave 3 peaks. This makes it close to a 10 year bear market and we’re still counting, as “every” rally in the Euro has been completley retraced.

Hits: 21

Euro Daily Chart Bearish Phase Update

The Euro bullish phase came to a dead stop right in a long term bearish trend line that has been going on since the 2008 peak. That 2008 peak matched other commodity peaks along with oil. The only change I’m making is in this bearish phase is to drop down by one degree. People may think it’s funny that I’m concerned with being out by one degree.You may think differently if  only one degree can put you off by 60% or more. This the same as the  Fibonacci number of “.618” which separates each degree level. One degree difference means finding a huge bear market bottom and missing the entire bull market that will follow.  With the 15 degree levels that we deal with, being out one degree is huge.

I’m starting a Minute degree run, which should end up at a wave 1 bottom in Minor degree. For many years gold ran along with the Euro as the US dollar imploded, so it is pretty hard for me to swallow the gold bull market at this time. Oil is also at an extreme so the Euro and oil can crash together, as they sure share that same 2008 date!

A very strong commercial short positions are still on which should slowly start to reverse over the next bearish phase. The Euro is in the US dollar basket, so some of the currencies in this basket, is what we use to watch for reversals.

Hits: 8

Euro Weekly Chart: Impending Bull Or Bear Market?

I had called for just a correction in a bullish phase, but the small April pattern looks very impulse to the downside already. The US dollar is doing the same thing, except it is heading in the opposite direction. We now have 3 huge peaks to connect,  all showing a downward bias. We had two huge H&S patterns which both proved to be very bearish as the right shoulder refused to push higher. It is obvious that the Euro is in a bear market, but putting a wave count to it, is not so obvious. One main reason is that it’s a diagonal decline, where wave patterns can and do go wild with regularity.

The Euro would not necessarily need another zigzag, but we would definitely have to keep a look out  for a wandering impulse. The previous 4th wave low I have will not hold the Euro as this dip could be much larger than we think.

This picture looks very bearish as it sits right now, and we might have a Minute degree start already.  A Minute degree or Minor degree start, that does not fit a bigger bullish move, instantly forces a review.

Ideally, there should be little to no lag time in forcing us to go back to find a better fit.  Yes, I’m guilty of cosmetic wave counting at times, but we always pay for that in the long run, by missing bear or bull markets. I don’t like to miss any bull or bear market as it reverberates across all asset classes, especially gold!

The faster we recognize the fact that we are wrong or in the wrong position, the faster we will come up with a better fitting wave count. There is a very high probability that the Euro has already completed a Cycle degree wave 3 top in 2008 which matches the crude oil peak of 2008. Oil also fits well with a wave 3 in Cycle degree. Gold is off by about 3 years, but we should find more Cycle degree wave three peaks as time goes on. I will work on a small list of Cycle degree peaks in the commodities I cover, but it will not be all of them as I don’t have time to cover fringe commodities.

The dark red lines show short positions by the commercials, which makes chasing bullish wave counts a rather futile effort.

Hits: 8

Euro Daily Chart Crash Update

The Euro acts inversely to the US dollar, most of the time but not always. At this time the Euro is acting the opposite way of the USD which is pretty normal.

If the Euro still has a big up cycle left, then this decline will come to a halt and then reverse again. The first horizontal line is the previous 4th wave of one lesser degree, but in a wave 2 decline, it does not have to make a picture perfect landing. It can do a belly flop at much lower prices.  For a wave 2, I like to see a 60-70% retracement as that sure would get the Euro bears excited.

We do have some sideways action that already suggests a correction is going to take place. I looked at the COT report and the commercials were skewed to the short side, and the speculators are still skewed to the long side. Two completely different sets of opinions!  We should understand that the speculators are the trend chasers. They will always get into a trap, be it a bull or a bear trap.

The media spouts what the speculators are doing, as they think that the speculator long positions is the smart money.

Be prepared that the Euro has more downside to go,  as this decline is not deep or long enough to have completed a wave 2 in Minor degree.

Hits: 6

March, 8, 2018 Euro Intraday Correction Update

The Euro bullish phase is still in tack, but it must push higher to confirm it.  Another 5 waves up in Subminuette degree will do it, but we need lots of patience to wait out any extensions that may still come. 5th waves are notorious for extending in commodity charts, and may even start out as a diagonal pattern. Commercials are net short with this futures chart, so a screaming sustained bull move is highly unlikely. We would need a strong correction like a wave 2 in Minor degree, but we are still far away from that at this time.

I would love to see a 4th wave triangle first, then I would change my outlook after the “thrust” has completed. These “thrusts” can also be short and sweet and then turn early very quickly. We have a major double top, that the Euro has to break through, and that may not happen until we get closer to the end of the month.

Hits: 15

Euro Intraday Bull Market Update

Our February Euro peak sure can fit into a triangle. Triangles have been on the rare side, but I have more than just one asset class that a triangle has formed. A triangle eventually spells doom once the “thrust” has played out. In this case I need 5 waves up in Subminuette degree. That could take another full month to play out, and anything less than a new bullish breakout would be unacceptable from my perspective.

The Euro is in the US dollar basket, but many times it acts inversely to the US dollar. As long as the US dollar still has downward potential, then this Euro futures chart can still soar. Eventually this 5 wave run could end up at a wave 1 in Minor degree, followed by another Euro crash/correction.  Gold should benefit from all this turmoil in the markets so the gold bull market is not dead just yet.

Today’s COT report will tell us more in what the commercial traders have done.

Hits: 6

Euro Intraday Bearish Phase Update

Since the January bottom the Euro has made a great 5 wave run.  This morning the Euro broke that 1.22 price level, which could have been a base for another small run of 5 waves.  The Euro is in the US dollar basket, which runs inversely to the US dollar. The US dollar basket is destined to be changed as some currencies will be removed but other main trading partner currencies will be added.  The changes in the US dollar basket are just opinions right now, but it will be interesting to see if my big US dollar wave count will be threatened.

Besides the potential for a wave 1 peak in Minor degree, we could be at an “A” wave in Minor degree just as easily. It could mean a 60-80% wave 2 correction can happen, and it won’t stop at the obvious previous 4th wave in Minute degree. Commercials are net short the Euro, and until that changes dramatically, the chance of a super Euro bull run may just be a pipe dream.

Still, we need to keep our options open, as no wave count is etched in stone. Only the idealized charts are etched in stone.  😀

Hits: 7

Euro Daily Chart Update

What sure looks like a good impulse run seems to have come to a screeching halt. Once it breaks the 1.22 price level, it would trash another small run higher.  At the same time the US dollar also seems to have a shortened 5th wave and it is still soaring as I post.

The commercial traders are net short the Euro so until that situation switches, the Euro could make a deep plunge. If a wave 1 in Minor degree has completed, will the Euro fall back to the previous 4th wave of one lesser degree? The Euro may not stop at the 4th wave above because first waves can crash 61% of the entire net move. This could send the Euro down to the 1.12 price range before it’s ready to turn again.

On top of that we must see a decent physically sized correction, completing as well.  What could be worse yet, is if this entire rally, was a “C” wave bull market.

Hits: 10

Euro Bull Market Daily Chart Update

Since the beginning of 2017 the Euro has been in a bullish phase, that has been running inversely to the US dollar. I think a correction is completed, which means another 5th leg up in Minuette degree,  should play out. 5th waves are notorious for extending so we don’t want to call an end to it too early.

Once this set of 5 waves in Minute degree has played out, then the Euro could suffer another serious setback (correction) but the final 5 waves up in Minor degree should still happen.

The commercials are net short already which is the smart money.  The non-commercials or speculators, is the dumb money, which is the group that the mainstream analysts always talk about.   The speculators are the ones that always chase the trend as the commercials never do chase the trend, as they do the opposite. When the commercial traders are overwhelming net short then the bull market in the Euro will come to an end.

Right now the speculators are chasing this Euro bull market and they have about a net 2:1 long Euro positions. What they call smart money is already painting themselves into a corner, as they build themselves into a bull trap.

This will not happen instantly as it takes a long time for these net long positions to develop.

Hits: 5

Euro Bull Market Review

I spent a couple of hours looking back to 1985 which was a major Deutschmark crash bottom, around the time that the cold war ended and the 1989 Berlin Wall crashed. Shortly after the DM crashed it started to soar again. The DM then crashed once more ending in 1999-2000 at about the 85 cent price level. From the peak in 2008 the Euro crashed until early 2017. From this ugly bottom the Euro has enjoyed a bullish phase now starting its second year. In 2016 I knew a bullish phase was coming, but hell if I could find a decent wave count that I could publish.

Our present bull market sure looks like a high quality set of impulse waves, which are pointers to a new trend that should keep on compounding. Provided it’s not part of a “C” wave bull market. If the Euro was part of a “C” wave bull market, then this pattern would contain far more diagonal wave structures.

So far there are only a few diagonal wave structures that have developed in their proper locations. The Euro would need to show us 5 waves up in Minor degree, but we’re still working the first 5 waves in Minute degree. Wave 1 in Minor degree could still be a few months  away, after which we could see a horrific wave 2 Euro crash. If the Euro crashes, then the US dollar will rally, sending gold into a major correction as well.

We have a November 2017 Euro bottom, ($1.05 US) so if this wave 2 Euro crash is coming then, this is where we should look for major support and a reversal. The Euro should then transform into wave 3 in Minor degree. Once wave 2 in Minor degree has completed then I will look for three sets of 1-2 waves, which would be an extended wave 3. I “always” start off counting, as if  wave three is going to extend, but will dump it as soon as they don’t materialize.

From my perspective,  Elliott Wave analysis is all about the process of constantly trying to eliminate 4 out of the 5 simple wave patterns we work with. Of course, this is all specific to the degree that we think we are working in. 99.9999% 🙄  of the time we’re not in the degree that we think we’re in.

Even now, the commercials are already net short the Euro with the spread getting wider. The Euro is in the US dollar basket, so all the other currencies that run inverse to the US dollar should also have major reversals. The speculators are betting the exact opposite way, as they are net long by more than a 2:1 ratio.  Sooner or later the speculators will get themselves into a “big”  bull trap.

This potential wave count is very speculative, but the only way to help confirm it, is by running it. I will still need to tweak this wave count all the time, as I’m sure we will get a few more surprise extensions yet. At about the $1.27- $1.28 price range, we could run into some serious resistance, so we still have some upside room left.

This would also kill my”E” wave decline that I have with the US dollar wave count, so this wave count will be doing double duty. I’m still early on this and I don’t expect it to happen in what’s left of January.

Hits: 5

Euro Daily Chart Bull Market Review

Since the very late 2016 bottom the Euro has exploded, and for now I’m using a “D” wave bottom.  What we do have seems to be a good looking impulse, so I will go with that for now.   We could hear about reports that the Euro is done for, but this impulse is not finished as we would still need wave 3-4-5 in Minor degree  to develop.

The Euro is still a bit away from the long term bear market trend line, so that still gives the Euro some bullish room to move.  When the 5th wave starts to finish, then we have to wake up and figure out if it was all just a fake bull run, and that any anticipated “E” wave would never happen.

The commercial traders are all net short the Euro but not by any extreme just yet. If their short positions increase consistently then this would start to send a warning for a strong reversal.

Down at the 1.07 price level, we have a big gap waiting around to get filled. You’ll  have to wait much longer as I don’t think the Euro is going anywhere near that gap until all 5 waves in Minor degree have played out.

This should be just a correction, but it may still need to last longer and travel deeper before another leg up commences.

Hits: 4

Euro Bear Market Daily Chart Review

 

 

For close to 21 months the Euro has been going sideways with some death defying crashes thrown in to keep us all guessing.  I look at the euro as a big zigzag drop, and this sideways pattern is just a wave 3-4 still playing out. 

From the May 2016 top, the Euro has declined in one ugly set of waves heading down.  These are not impulse waves, as they don’t even come close, even though I have no critical overlapping.

There may be more downside to come in the short term, but longer term we could see the Euro rally if the US dollar starts on a huge decline. This wave is also very short but wave 1-2 and there are evenly extended. When two waves are extended then the last 5th wave has to be the shorter one. This sure seems to be the case at this time. The commercials have been net long for a long time, but this trend chasing speculators, have been net short for just as long. They both can’t be right and in my experience it is more important what the commercial traders do, than what the emotional trend chasers and money managers are doing. The majority of the time the mass media reports to us, what the trend chasers are doing.  Emotional analysts reporting on emotional speculators, is not what we can base any investment ideas on. 

The Euro is just the flip side of the US dollar, so unless some huge diverging action is about to happen, I can see that the Euro has to go up, while the USD declines.  

 

Hits: 5

Euro Bear Market Review: Will The Pain Ever End?

 

e6y00-nov-20-2016

 

We sure seemed to be looking at a double or even triple bottom right now, which could give us a bullish phase heading into next year.  When the USD implodes would it not be fitting that many runs to the Euro for a place to hide out?  I can’t see that the EURO keeps on imploding if gold carries on with its bullish phase. This would indicate a massive diverging shift to come, which I find rather hard to believe.  Only time will tell us what will really happen, but the commercial traders are still net long the Euro, even though the increased their short positions last week.  Can it go lower? Sure the Euro could make a wild spike to the downside, before it soars.  The Euro has tried to break out 2 times since 2015 and I’m sure it will succeed on its 3rd try

Hits: 5

Euro Weekly Chart Bear Trap Review

 

e6y00-oct-22-2016

 

I believe the Euro is not as dead as many may think. One way to check are the positions of the commercial and speculator futures traders. The speculators act just like the public does, as they are the trend chasers, price speculation is all that is on their minds. Adding shorts to a perceived bearish decline is the worst way to trade, as you would be digging a deeper and deeper bear trap.  This is what contrarians rely on,  as they know that the herd betting in one direction can never win.

We could see a sudden Euro bull attack, triggering all those buy stops above present prices. This would  instantly convert all the bearish players into bullish players, closing off a nice bear trap in the process. 

This could be a Primary degree bottom so any bullish phase will take some time to play out.  I use late 2015 as my bottom, which was the tail end of a diagonal decline. This inversely matches the US dollar very well.  We also have a higher low which is a sign of a potential start to another bullish phase. 

Hits: 3

Euro 2008-2016 Bear Market Review

 

e6y00-oct-19-2016

 

Great looking crash, right? Having a very bearish wave count in sympathy with all the other Euro bears will never work, as  downside would be limited at best.   When we look at the commercial traders positions and we find they have  very big net long positions with their Euro, then this puts up an invisible roadblock, that not too many people ever see or even look for. Analysts use the speculators as the smart money as they are being quoted the majority of times. Speculators belong to the managed money crowd or the hedge fund owners.

When was the last time we heard about hedge funds making money consistently? Overall, they are dropping like flies and can become extinct if they refuse to change. 

Not only are the commercials net long in the Euro, but they are also net long with the CAD,  Swiss Franc, Mexican Peso, and GBP.

Numbers like that make it pretty tough for the Euro to create one more big leg down, We may get more downward moves,  but these should be limited in scope.

Either way the top trend line should get sliced if we are in an “E” wave type move.   When all the euro trader’s positions invert, then we know that the Euro will either correct or just head into another bear market.  

From the May, 2011 peak, the Euro declined in one ugly move, that I can only call a diagonal 5 waves down, as we have some very choppy waves, that make the US dollar waves look pretty mild in comparison. 

You may hear many stories about a nuclear war coming from Russia, but some of that rhetoric is designed to rattle US voters and the new incoming president.  When I was a teen nuclear bombs were being tested all the time. 

Here is an excellent time lapsed video to give you an idea, how bad it was in my younger years. 

Hits: 1

Euro, A Primary Degree, Diagonal Perspective.

 

e6y00-2-oct-14-2016

 

Up into 2008, gold and the Euro were best buddies, as the US dollar imploded. Now if the Euro is going to melt down, but gold is supposed to go up, then this would be a blatant Euro divergence from gold. If the Euro still makes a steep plunge but starts to find a base, then we could see a strong Euro rally that will impress us. Of course the USD would have to drop like a rock at the same time. With a spike forming, it would not surprise me that it can turn sooner than we think. 

Looking at the Euro commercial positions, they added about 23,000 contracts, to an already heavy net long position, this is very bullish for the Euro and also means downside would have far more resistance than we may think. Of course the merry band of speculators, have increased their short positions as well. This smells like a Euro bear trap, and until that all reverses, the odds that we get a Euro rally, starts to increase substantially.

 

Hits: 4

Euro, Cycle Degree Bear Market, Weekly Chart Review

 

e6y00-oct-12-2016

 

The Euro has gone sideways for well under two years already, but these are not the signs that the Euro is going to go on some sustained bull market, and saving the EU zone from currency destruction. Everything points to the fact that the Euro will eventually head back down much further than previously thought. The USD has cranked up, as the Euro has headed down in the last few weeks.  Sure the Euro can keep going down, but then it’s going down as a diagonal and that would mean we are in a 5th wave, and not some other wave structure.

A short counter rally can still happen as we have two major spikes that could get matched with a third spike.  Another spike in the Euro would also help gold to soar, as for many years gold and the Euro were inseparable.  We will see if there still is a bit of a connection there, as I think there is. Markets have to eventually confirm this, otherwise we have to throw the Euro away as a useful inverse indicator. That will be hard to do, as the Euro is in the USD basket of currencies. 

I will post the Euro when I see a potential turning, but not on the intraday scale, but either daily or weekly charts.  

Hits: 4

Euro Weekly Chart Update

 

e6y00-oct-9-2016

 

I recently had this bearish wave count as a potential wave 3 extension.  The Euro’s  present 2016 choppy decline signals a potential 5th wave. The 5th wave is one of the most popular places when diagonals can happen, so this is always a big clue where we may be at.

Either way this bearish rally from the wave (3) bottom to the wave (4) top, was about 12-13 months. The Euro downside should have a lot more time to run as Europe has killed most of its currencies, and the running to safety could send money into the US dollar. 

The Euro is on a Cycle degree decline which is the opposite of the US dollar. When this bottoms, then we could see a Supercycle degree wave (III) bottom, followed by a huge bull market, If it survives.  We may see Euros being pushed around in wheelbarrows, but I could be wrong about that, as they may need dump trucks to do the same thing. The EU has a banking crisis and it would not take very much to set off a mini panic out of the Euro.

Commercials are already net long, so this bodes well for a Primary degree rally still to come, but first a new low has to confirm this sideways pattern was a fake attempt at a bullish run. Sideways action is never a good sign for a great bullish run even though some more upside next week can happen.     

Hits: 3

Euro: 1985-2016 Cycle Degree Wave III-IV Review.

 

e6y00-oct-6-2016

 

This week I have started to look and recount many of the commodities that I analyze. I realized that Cycle degree wave III may have been in our past for some time already, but now we have to find the best location for it. Most of the problems we had in doing this, is because the lack of charts that go deep enough in history to find a more detailed chart. We have to get the old Deutche Mark chart, and it will splice into the Euro chart above. 

It is this Euro chart where I have to inverse the EWP, and not the USD. It is the USD that refuses to implode because it still is in a huge bull market, and the inverse is still true with the Euro. I saw a 1-2, 1-2, and a third 1-2, which is exactly the type of count we would get in an impulse. This can happen going up or down, but with the Euro we are eventually heading down big time. Not until another bullish rally has been completed. The Euro is still resting, but don’t let any counter rally make you think that the Euro is going to the moon. It’s going to go the opposite way and get flushed down the toilet as the bearish mood at that time will be at an extreme. 

In the long run the Euro will get crushed and if it survives after the Cycle degree wave 5 bottom, then we should see an all new bull market in Super Cycle degree. Moving Cycle degree wave 3 into the past, pushes us closer and closer, to all the Supercycle degree wave positions as well. 

If the Euro does “not” hit .55 on the chart above, I will be surprised.  The next new decline should give us one more set of 1-2 waves in Minute degree, but many times they may not peak through. At this level they may be hard to see.  Once this next set of 1-2  waves completes, then the Euro will be about half of the way to its conclusion.

After any Minor degree 5th wave is finished, then only the 3-4-5 wave sequences will show themselves.  I have talked about the 1-2 punch many times, but devoted wave counters are the only ones that will understand these sequences. 

Hits: 5

The “Big One”, USD, GBP And The Euro Review

 

B6Y00-June-24-2016

 

This is the GBP which I see as a big triangle in Cycle degree, but what we are seeing is an “E” wave decline in Primary  degree, which contains three moves in intermediate degree.  Chances are good that our present “C” wave decline in the GBP is a diagonal pattern as well, so I will be talking about the diagonal for a long time to come.

E6Y00-June-25-2016

My Euro wave count is a work in progress and needs constant reviewing to figure out where we may be in the big picture. I have mentioned it may times with my wave counts that the Euro still has to decline and make new lows, below what looks like a 4th wave decline.  In the aftermath of Brexit, the only thing left for safe-haven may be gold. 

 

DXY00-2-June-24-2016

 

This US dollar is the key to what is going to happen to gold. It may be a safe-haven along with gold as the USD and gold spiked together.  It looks like an inverted zigzag is still to complete, but if this diagonal pattern is real with the US dollar, we should see that 92 price level broken.  The US dollar would have a battle if another huge leg to the upside were to occur, but this Brexit is also a currency battle as all currencies have been affected.

 Again, I would like to see more US dollar bearish evidence as that would support the new gold wave count perfectly.  I show an all time high as a Primary degree 4th wave top, so if this is true, then there may be a very good chance that the US dollar will see a major decline, but with diagonal waves being the dominate pattern.  Five waves down in Intermediate degree would be the technical description.

 

Hits: 7