WTI Crude OIL Intraday Crash Review

CLM16-May-9-2016

Crude oil crashed this morning, but it crashed in a rather sharp straight down type of a pattern. This is more a corrective move, then anything else. I will not put multiple alternatives in one chart as it is pretty common knowledge that there will always be alternates. Every post I make is always a new chart as all patterns get reviewed on a constant basis. One thing I can say is that the decline that started at the end of April is correct after all, so eventually crude oil will travel much higher but we have to put up with the corrections when they happen.  

Even oil can be in a diagonal bull market so we have to be aware of that as well. We are not anywhere near enough to a halfway point of this bullish run, but when we do get there we could be in for another ugly correction. The faster any move makes up, the uglier the correction can be.

I am working through a potential “ABC” that still may go sideways before another big drop. Oil only has less than $1 to move down.

If you have read news about the Fort McMurray fires we know that it is one of the biggest natural disasters in Canada at this time. Fire near the oil sands should not be a problem as all the plants have their own fire crews on standby. Any fire into the oil sands creates a cap and will not burn down like coal can do.

In the end 1 million barrels of crude oil production per day, have been taken off line or can’t be produced. It is the insurer’s  that will take the biggest hits and that is some of the banks that will be affected.

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Mini SP500 Intraday Review

ESM16-May-9-2016

I am looking at this SP500 as a potential corrective decline with another smaller correction in progress. There is very little room to move here so it won’t take very long for the markets to show us that they want to push higher. Gold sure has reacted to this and so has oil. If we were to progress down with these many  overlapping waves, we will  take forever to get anywhere.  If we are going into a longer sideways triangle type move, then it will also take more time. Right now the Mini SP500 can’t dip into the 2045 price level and it sure must not dip below, 2030. Short term I look at staying bullish but not for the long term as I feel the “big one”  is still to come.  

I can read all sorts of waves on this and even an Intermediate degree wave 2 top, so we have to wait and only take shorter time trades until this clears up a bit more. 

 

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Fort McMurray Fire

My friend and I were having breakfast at our favorite local “ABC” restaurant,  when he brought the fire news to my attention. I was already reading some news about it, but this fire is bigger than many think, and they are saying it can impact oilsands production and even the GDP. 

It will remain to be seen if this fire affects real estate prices across Canada, bursting the great Vancouver real estate bubble. Sometimes events like this can be so large and psychologically important that it marks certain time periods. 

 

5202986_orig

No wonder nobody wants to buy stocks, why should they as the SFD are rising 1.4% per month.

 

 

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Mini DJIA Intraday Rally Review

 

YMMY16-May-7-2016

Shortly after the employment reports came out the DJIA turned and started to rally. I guess that means all is well in the economy and stocks are going to soar!  If stocks are going to soar, then the HDGE ETF is going to implode, as it acts inversley to stocks.

I will talk about HDGE more below.

Apple barely moved so if there is no hope for Apple then there is no hope for the DJIA.  This decline is not a healthy impulse decline, as I am having to struggle with an impulse wave count. When this happens, I must assume the we are in some diagonal.

I have an “E” wave at the very top in Minor degree, but I think that is not going to last that long.

The problem with diagonals is that they can decline like this for a long time, driving us wave counters nuts. Sure, we had a sharp spike to the downside, but that one was pretty small for what I would like to see in a bigger reversal.

 

HDGE-May-7-2016

 

HDGE came to a screeching halt in the last days of April, before it turned and headed north while stocks headed south. This ETF will not react on a dime like futures will as futures are leveraged and act far more violently to news.  For stocks to continue in a big bull market, HDGE would have to implode and head closer to zero.  At $10, HDGE doesn’t seem it would have that far to fall and we could think that a major bottom is close at hand, until they inverse split it. If they did this 3 times, then this $10.75 ETF would be at $32.25 and then it would have much more room to keep falling.

I have seen this happen many times and no stock or ETF is immune to this. Any price getting to $5 and lower is a prime target  for inverse splitting.  With HDGE going vertical a correction should be due, and it is this correction that can help us determine if stocks are going to push much lower. I will be looking for an “ABC” type crash which will tell me that another leg up in HDGE is going to happen.  How far any move can go this time around remains to be seen, but after a correction I will turn more bearish on stocks.

The VIX has made a dip, but would head further south if stocks still have a bit of steam left in them.

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Gold Intraday Rally Review

GCY00-May-7-2016

Gold made a nice pop on Friday before it backed off for the weekend. Trading will start again Sunday night and that will be the test to see if gold and its potential wave 2 top will hold. I left the very top with a question market at this time as we still have many options we can explore. After all, if stocks go for a trip south, then shouldn’t gold fly as a safe haven asset? Well, not necessarily because the USD could become the safe haven ignoring gold and stocks.

The entire rally in gold could potentially be an a wave or wave one in some type of diagonal bull market, and if that is the case, then some type of a strong correction must show itself well before gold hits $1050.

In the end, we will not know unless we give it some time. In my time doing research I read an article on gold that was interesting.

http://www.horizontimes.com/facts/12-jaw-dropping-facts-gold

The gold/oil ratio is still very mild at just under 28:1 so when compared to gold oil is still very cheap.

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WTI Crude Oil Intraday Review

 

CLM16-May-7-2016

Crude oil peaked out with diagonal looking waves. At the peak I am using wave 3 in Minuette degree, so I must not use any bigger wave degrees than that until this so called correction is completed.  It sure looks like it that the next wave one has completed, which could be very true, but I want to eliminate any potential triangle first. In other words, when this run has finished, we just may be at the first “A” wave of a triangle. 

My first 5 waves took about 3 days. I need about 10 0f these types of up and down moves which would last 30 days in total. Many times they have very wild looking moves or even very straight ones, and would not form perfectly. This also changes the time for a triangle to complete

Again, this is one wave pattern I want to eliminate, and the only way to eliminate a wave pattern is by running until it busts. I still like to try to get a warning posted if I see it doing something else. 

Some say that oil will drop below $40 soon, but that is not much of a stretch as I see it. Anybody can forecast 10%-15% above or below any price and have a good chance of hitting it.

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Gold Intraday Rally Review

 

GCY00-May-6-2016

Gold was already heading up before any of the important reports this Friday. That does not mean that gold will go to the moon, as the US dollar is still in a bullish run. Since the gold rally pattern, is already choppy with very overlapping waves, then this run could come to a grinding halt far before a new high is reached.

Gold ended with a 3 wave crash at yesterdays low, but I can also fit that into a perfect 5 wave decline. If a wave 2 top is in the cards, then this small bullish phase can turn and then gold would head south very quickly.

For those that are interested, I get my futures charts from Inside Futures  and most mornings I scan about 30 charts consisting of futures and other stocks/ETFs.  I do what I call  “finger wave counting”  or “eye wave counting” as you have to see the waves before you can count them. Counting out waves is a secondary act of confirming what you see. 

Shorter term, if the May 2 was a maximum high already, and we  get a better correction, then another leg up will come as we could be at a diagonal wave 1 in Intermediate degree. There are still other potential wave counts, but I will not post them in one chart.  All my charts start with a blank sheet everyday, with all new wave counts if required.

Starting with a new sheet everyday forces me to continually look for alternate patterns.  This is also so I can catch as many mistakes as I can, and doing it this way can always supply a new perspective if you’re looking for them. The key words are “if you’re looking for them”. This especially applies to all of the 18 degree levels.     

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Min DJIA Intraday Review

Ymm16-May-6-2016

Any wild ride that was expected to turn into a dud as the numbers weren’t all that bad. So will this make stocks soar? They can as this decline sure does not fit into a clean impulse, so I am very suspicious in its bearish staying power. If we do get a stronger than the expected counter rally, then a triangle may be in effect, and we would still have more sideways action to come.

We are also coming up to a potential double bottom as we are staring at a Head&Shoulder pattern right now.  The Mini DJIA is on the verge of breaking through my top trend line and that is eventually going to happen anyways.  This has been a very soft decline so far, but if we saw a hard down push ending with a long spike then, I would have to turn very bullish quickly.   

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Euro 2008-2016 Review: Has It Gone Far Enough?

 

E6Y00-May-5-2016

It is always important to review back as far as we can when the short term moves are foggy. At the 2008 peak, I am going back to a potential Primary degree wave 3, and creating the bear market with a diagonal set of waves where waves overlap more, but they still have a basic impulse form to them.

The Euro rallied for 2016, but that was a very choppy rally and waves like that usually retrace themselves completely. For this rally to turn into a “C” wave decline, I do not want to see the Euro hit a new record low but stop short, and give us a double bottom.  This would allow a flat to complete, meaning a powerful “C” wave bull market would follow.

Any bull market in the Euro is a good thing for gold as it is one of the inverse currencies that I watch, with the CAD and the AUD being the others.  I have no time to maintain a good wave count on the AUD, but will try and post something on three of them. USD, CAD, EURO.

If the Euro did break to new lows by a small margin, then this would be considered an expanded pattern, and any rally we would get would have a limited life span as well.  Any future rally can break into my wave 1, which would be very close to the top trend line as well.

Every posting, I will try and include or create a Parent category, where I can add several other asset classes of the same type.

I am still getting used to this editor and I end up making errors, but the short story is that all the single currencies that I do look at, should be under the Currencies parent category. I will also include Tag words, but will start to back off using “Elliott Wave Count” as everything on this web site is Elliott Wave related in some way 

Since I am expecting a decline, then in the short term this would not be good for gold and gold stocks. 

The commercials are still net long on the Euro but they added to their short positions last week. I take that as a bit of a bearish signal. In my old bullish consensus reports the Euro hit a low of only 10% bulls, which in the longer term, is very bullish. 

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Silver 1993-2016 Review

 

SIY00-May-4-2016

 

Silver has one crazy pattern as it never has followed a true impulse wave that I can see. All the waves are erratic with overlapping waves. EWI did call that 1993 low when it happened and silver has never breached that price level again. Many say the great silver bull starting in 2000 but in reality it started in 1993 ending on a zigzag.

That 1993 low, I call a potential “A” wave bottom in Primary degree followed, by a bull market with inconsistent impulse patterns. In 2011 we hit a major top just a bit under the 1980 price level, before it also succumbed to a bear market, just about going on 5 years by this September. Five years is a Fibonacci number, so if a new low is still in the cards, then time wise it would fit very well.

Silver took 13 years to crash to the 1993 bottom, so we should consider ourselves very lucky if we get away with only a 5 year bear market.  The same can be said for the late1919 peak to the 1932 crash bottom, which also took 13 years. It may take until 2040 before we see another start to a 13 year decline, as this seems to be part of the 60 year cycle.

Gann Global Financial talks a lot about the 60 year cycle, and they have many free videos that they show. 

If silver makes one more new low, then I will turn very bullish, if the suspected wave count becomes true. There is a chance that a diagonal is in play, but we would have to see a good correction to help confirm that. 

 

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Canadian Dollar Gets Slammed!

 

D6Y00-May-4-2016

Our pathetic Canadian dollar or our peso as some like to call it, was stopped dead in its tracks, which was no surprise as I have been warning about this for some time. The problem is what’s next? Any wave 2, can go all the way down to a  61% correction, or even more.  To say the least that is not reliable, as it even could stop anywhere in the 40% to 50% range, depending on the strength of the overall market.

The higher it will eventually go the closer we will get to another recession as we were in the middle of a recession the last time the CAD peaked out in 2008. Oil has also been declining, but oil is in a small rally right now.  What we have to look out for is a corrective type of a decline with a good looking trailing “C” wave.   

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Mini DJIA Intraday Review

 

YMM16-May-4-2016

The DJIA made another newer low, but they sure are ugly waves, and still fit diagonal waves very well.  Things can get very violent on ” Crazy Fridays”, which is the first Friday of the month, as jobs reports can wreck havoc with any wave count.  If any rally does not show any impulse power, then, this market will turn south one more time. The worst wave counting scenario would be a continuing diagonal decline, as we head to another “A” wave bottom.

I would like to have seen a better distinction with our many different tops, but a truncation could be a real probability.   It would be fascinating if we were in a diagonal Intermediate degree wave 2 top and we had waves 3-4-5 still to go. This could point to a Primary Degree “A” wave.  2011 lows would then be a target range, but it would take well over another year or so to play out, as wave 1 has been about 1 year long already.  

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Crude Oil Intraday Crash Review

 

CLM16-May-4-2016

So far oil is following the diagonal script very well, but that does not mean oil can’t change its mind. I am counting this as a diagonal decline which could lead into an “A” wave. Hopefully it is not part of an ending diagonal which would take oil to a new bear market record low. We will have another look once any potential “B” wave comes.

This may be extremely hard to catch, especially if we could be on a diagonal wave 2 decline. Of course, everybody on the planet have resumed their bearish rants as they repeat what all the other parrots are saying. I only listen to one parrot and her name is Stella! 🙂 Just kidding folks, but I do have a picture of her.

I get very bored with looking and reading other wave counts,  as they become so mundane and boring. I don’t think I can keep writing without occasionally injecting some humor into my work. 

There are many sites out that give Elliott Wave trade setups and I will never try and compete with them. I try to catch turnings that would wipe out most trader accounts if they stayed in.   I think EWP is a waste of time for small intraday trade setups as not enough readers can read them at the right time and even less can act on it playing the markets on the short side.  Playing short and then missing a major bull market is an Elliott Wave counting crime and when that happens, serious reviews of the wave counts must be initiated.   

Until I see a clear enough “ABC” decline I remain bearish in the shorter term but bullish for the longer term. Eventually oil should go above $115 one more time and when we get there we will have a look how much further it can go.  I just checked the gold/oil ratio and it is still a healthy 29:1, when I use the cash charts. 

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Gold 1980-2016 Cycle Degree Elliott Wave Count Review

 

GCY00-May-4-2016-b

It is always a good idea to look back in time, to see how things fit together from the larger perspective. In this case I am showing you a perspective from a Cycle degree linear chart setting.  This shows that the 2011 peak may be a Primary degree wave 3 top, and the bear market which will be about 5 years long this fall, would be an “ABC” crash with and ending diagonal.  Our present rally from late 2015 would be a diagonal wave 3-4 in Minor degree with one more diagonal wave 5 to go. Ending diagonals, develop on the tips of “C” waves, so that would also be a fitting pattern to the end of a bear market. Ending diagonals are real confidence boosters for me, but we have to be very careful so not to be too subjective.

 I look at everything from a Cycle degree perspective, and hunting the 5 waves in Cycle degree is my sole purpose as without them being confirmed, “no” SC or GSC degree wave count can exist on this planet! 

Gold would have to suffer through one more decline with a length impossible to count out at this time, but any new low below $1050 would help to confirm it. As I have mentioned many times the pattern changed in mid 2013 which would be the beginning of the ending diagonal. The late 2015 bottom didn’t stop anywhere important as it didn’t even stop at a potential previous 4th wave dip. Gold is declining as I post and I would expect it to still swing widely as job reports come out. 

I scratch my head all the time as the world brags that commodities run on supply and demand yet they act the complete opposite at the extremes. In 1980 they said gold was going to $2000 yet it crashed to $300 a few years later. Then when everybody was dumping gold in 1999 gold turns and goes on a massive bull market defying all logic. 

All the banks and countries were selling gold, and funds were unloading gold stocks as fast as they could, yet a gold bull market was born. 

Then in 2011 when all the banks and investors have been buying and told gold is going to $5000 or $10000, it turns and starts on a major bear market. Now the whole situation may become reversed one more time if the ending diagonal gets confirmed.  Contrarians know this is how the markets work and they don’t need any Elliott Wave to tell them so.  Some of the gold stock ETFs have seen 100% gains in just 4 months or so.  I bet very few Elliottitions saw it coming and were in position before it surged.

Short term I am very bearish, but with the potential of this wave count we can see a bull gold party coming. It still may take 2016 to play out, but it will be a new story once this bear market has completed.   

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Apple Bull And Bear Market Review 2012-2016

 

AAPL-May-3-2016

 

Single stock Elliott Wave Counts are not at the top of my list of things to cover, but Apple is inside the DOW and the SP500 and it will go where they go. Or is it the other way around, that Apple is holding up all stock markets from crashing.  For the last month, Apple has crashed in a near vertical decline which is much like a “C” wave would act.

Since the bottom of February I was counting it as a 4th wave, but now it would have to be called a diagonal 4th wave as it ran too far and started to overlap a bunch of important waves.   We have about 4 open gaps on the way down and they would eventually have to get filled again. Please do not take that as a sure thing as these gaps can stay open for a long time, as Apple may have to sink much further. 

That rally to the April top, insiders were selling all the way up while all the analyst recommendations were overwhelmingly a “BUY” rating.  This is nothing new as I have documented this many times with other stocks. No matter where this stock may go in the short term, it is only worth investing in, if the majority of insiders, are buying. 

When they do buy it will become public information, then you may have a chance of being on the right side. If this rally is short and goes sideways, then watch out as more downside will certainly come again. 

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Crude Oil Intraday Crash Review

CLM16-May-3-2016

So far WTI crude oil decline is doing its thing. I see the pattern as a diagonal type as too many critical waves are overlapping. This move has a good chance of being the first part of a zigzag, but we would still be some time away from hitting the “A” wave. 

Overall and keeping in sequence to a potential Minute degree wave three top, I would need a single Minuette degree zigzag to complete a correction. My smallest letters are down at the Micro degree levels and hopefully we are not in an ending diagonal 5th wave decline.

The gold/oil ratio is still very healthy as it was very close to 29.5:1 when I measured it this morning.  For those that do not know  or have not read about the gold/oil ratio that I have used. It is basically the price of crude oil, divided into the price of gold to give us how many barrels one US dollar gold ounce will buy us. In this case I am using the June oil contract, but the cash gold contract. In 2008, just before oil crashed we had about an 8:1 ratio and in mid 2014 just before oil renewed it’s crash the ratio hit about 17:1. At the recent 2016 bottom the gold/oil ratio hit a mind boggling 45:1.

Shorter term I remain bearish even with a pending rally, but will remain bullish for the long term.  

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US Dollar Intraday Crash And Rally Review

DXY00-May-3-2016

I have been mentioning this 92-93 price level with the US dollar for a long time, or it seems like a long time. You can’t get any closer to the 92 price level than that after which it turned and charged up. If the US dollar has staying power remains to be seen, but it sure looks like the start of an impulsive wave structure. 

If the US dollar deviates and starts creating really choppy, overlapping waves, then the US dollar would be in trouble one more time. We may find out more once we get closer to Friday as all hell can break loose when the employment reports come out. 

The US dollar’s entire decline has been diagonal in style, which usually means a total retracement can still happen. Even now the pattern we do have can be a zigzag so that alone can mean a huge US dollar rally, which would be bad news for gold and other commodities.  

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E-Mini SP500 Intraday Review: US Dollar Up And Stocks/Gold Down

ESM16-May-3-2016

As we can see the SP500 made a dramatic move down, but still can be a “C” wave crash. At the same time the US dollar shot up with gold declining. The inverse relationship is holding true, but it is unclear to what type of staying power the US dollar has, regardless of what stocks are going to do. Oh, yeah, we can’t forget oil as it also took a hit.   

It will remain to be seen if the SP500 falls short of hitting another low. Even if stocks manage to pull off another newer low they can still make a major bullish move.  We would be in for a long drawn out process if this were the beginnings of a diagonal 5 wave decline in Intermediate degree. It is a struggle to keep any clean impulse pattern alive, which is usually a sign that I am chasing my tail and an alternate must be explored.  

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Comments On Our Canadian Debt Load

http://www.msn.com/en-ca/money/news/bankruptcy-on-the-rise-in-bc/ar-BBsy67q?li=AAggFp5

This news item talks about BC, but the trend is all across Canada in all major debt instruments. 

Real Estate is on that list as well. This trend should keep going until we are in another recession or deflationary time period. 

 

 

 

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Crude Oil 1990-2016 Review

CLM16-May-2-2016-2

Oil has been a big part of my analytics and will remain that way. I have made many charts in a collage style, way before ever starting a blog in late 2010. Many of these have been posted, but mostly in SC and GSC degree. Many contrarians saw the 2008 crash coming, but I was not pessimistic enough in my forecast.  I though $70-$50 would do it, but $34 ended up being  the lowest low. 

The main difference with all my wave counts is that I am working a giant Primary degree “B” wave containing a triangle. Since we now had another new record low, the bullish phase from 2009 to 2014 can now be confirmed as a bear market rally b wave, in Minor degree. 

I hate to include alternates in one wave count as I would rather post a complete separate chart for alternates. Charts look different when switched from daily to weekly and monthly settings.  I have this weekly chart set at 1500 custom bars.  With WTI oil coming back so fast, I have to keep the options open that an ending diagonal may not have ended just yet.

In other words an ending diagonal 5th wave would still have to play out but not necessarily travel to new extreme lows like $20 or $10.

Ending diagonals usually develop on the tips of “C” waves and crude oil is a prime asset class for this to happen. Even with a potential ending diagonal 5th wave, we would still need a zigzag type of a decline, but the longer term picture would still be very bullish. 

 

 

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E-Mini Sp500 Intraday Review

ESM16-May-2-2016

The E-Mini has made a bottom, but the rally is not a pure impulse. This could mean a diagonal advance or we are stuck in a smaller triangle and we are heading up the “D” wave.  Any “D” wave could go higher than my “B” wave before it crashes again. This still gives us far too many options in how high stocks can still go.  As long as the markets produce questionable declines, then there is always a chance that they can come back with a vengeance.

This has been going on since the 2009 bottom with late April of 2010 being an extremely bullish time. All the talking heads were yapping how stocks are the place to be, yet the contrarians were getting very bearish, including Steven John Kaplan and EWI.  I was also suspicious that a crash was coming in 2010 and we were not disappointed as it turned into the Flash Crash of 2010.

Now we have to wait and see how high this can go as the worst is always a diagonal move being so hard to see the difference between an inverted corrective move. They both can be very much alike for long periods of time. 

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WTI Crude Oil Intraday Review

CLM16-May-2-2016

 

Crude oil has finally backed off a bit, but any zigzag can also turn into an impulse. There is the chance that the entire crash needs retracing if an agonizing ending diagonal was still to play out.  Many times when there is a big “ABC” crash, then there is a good chance an ending diagonal can develop.  Any impulse that may have started would still have a long way to go, but it may have a tough time of it once the employment report comes out this Friday. Those reports come out on the first Friday of a new month and they can raise havoc throughout all asset classes. 

Hang on to your hat as it could get very volatile this week. 

 

 

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Gold Daily Chart, May, 1, 2016 Review: Bear Attack Anyone?

GCY00-May-1-2016

I could be completely wrong, but this gold rally is not your true blue impulse powered bull market. Once gold hit $1050 in December of 2015, gold made a very fast move up, which then turned into a wave overlapping nightmare! That has been the sad story of gold from the 2011 top so there is nothing really new in this move. Please don’t tell me that the fundamentals have changed as they are always changing, besides forecasting anything with fundamentals has never worked.

You may as well call them “funny-mentals” as it is something the analysts dream up and then repeat like parrots to each other. The entire world or at least most of it tries to forecast using fundamentals, yet the majority of these experts never saw the bull market in gold coming in 1999!  They also did not see the bear market coming in 2011.

When I stepped back and had another look, the patterns sure can fit into a potential ending diagonal extremely well.  Right or wrong, I have to turn very bearish when I see patterns like this, as gold can crash extremely fast before we have time to react.

It may take a few more days, but bear attacks have been known to happen in the early summer months, even the gold bears must come out of hibernation sooner or later, as the gold bulls are flush and fat with profits, and would make prime steaks on the barbecue this summer.  

 

  

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Canadian Dollar Bull Market Review: It’s All About Oil!

Cad

I created this collage  when I thought we were close to a bottom. It is a high res scan and with the color it is a very big file. The Cad had already bottomed and had slightly headed up. The pessimism towards the our CAD was at an extreme which the spike displayed very well. Close to that time period the bullish consensus hit an extreme low of 6%, which means the bulls have virtually evaporated.

This is one of the lowest bullish consensus readings I have ever run across.   

 

D6Y00-April-30-2016

Just about 5 months later we had a liftoff that also created the low in 2016, with a stunning vertical rally still in progress. At a minimum a correction is due as moves like this, cannot be maintained. Commercial traders are already net short on our CAD but that can still move much further to the extreme.

Again, if we look back to the 2008 top matching oil we can see about the same type of crash in the CAD as there was in crude oil.  I have mentioned this connection many times in the past because it has nothing to do with our prime minister’s  boxing skills or our economy getting better. The economy is not working well for all those that have lost their jobs in the oil provinces. 

The 2008 peak in our dollar has also corresponded with the depth of the recession, so any CAD bull peak may also be a sign that we are heading for another recession. 

Since I am reading the CAD crash as a potential zigzag with a triangle “B” wave, then we should see our CAD travel and pass that 1.06 price level.

 

 

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US Dollar Daily Chart Review

DXY00-April-29-2016

We are a hairs thickness away from a potential downside breakout so anything can still happen in the short term. The entire March, April decline is not your average impulse, as it looks more like a double zigzag with a diagonal 5 waves.

Why should the US dollar rally if stocks are going down the toilet drain? I just haven’t figured out if stocks are turning clockwise or anti clockwise! 🙂 Stocks can stop on a dime and head north just to keep us all guessing, with a bit of stock mania returning.

The commercials are still net short the US dollar but that does not stop the US dollar from a rally, we would need a much bigger extreme for the commercial reports to be of real use at this time.  

We sure can listen to the fundamental parrots that the US dollar is going to implode, but they said much worse back in 2008 yet the US dollar went exactly the opposite way and started to rally.  My last sentiment report a month ago or so hit a 24 month peak of 91%, which means only 9% bears were still left to join the bull party. This would be rare if not impossible as it never can hit 100%. 

Again, we are at the mercy of the next rally and the pattern it will make, and the best scenario could also be a diagonal decline with a wave 1 coming up soon. 

 

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Gold Intraday Rocket Ride Reveiw

 

GCY00-April-29-2016

Gold did a few things that I hoped it would, as it cleared a new high with gusto, this is very typical of a diagonal 5th wave, but we are not exactly sure as it can still go a bit higher. Running to gold as fear hits the stock markets is never a great idea as this is emotional trading at its finest.  Any vertical move cannot be maintained in the long run as they will all eventually die or correct strongly.

The HUI has also made a strong showing, but it contains many gaps below present prices.  Right now gold was a bit shy of $1300 which I mentioned as one my potential targets many moons ago. All downward corrections in March have now been retraced by 100% an more so this helps to confirm that “ABC” crashes can produce newer highs. I know of no other system which allows us to see that far ahead.

The sad part is that it works if we keep our degrees separated and in sequence and stay away from using WXY waves. 

Now that gold has charged up to a new high, I am sure that gold still has to correct this entire April move and head below $1210 again. Diagonal waves are much the same as inverted zigzags. 

 

 

 

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E-Mini SP500 Intraday Crash Review

ESM16-April-29-2016

The market crash was maturing a bit more this morning as we seemed to be on a very nice spike heading down. The Mini DJIA and the Mini SP500 are always on a slightly different wave count from each other. From a wave count perspective, these differences are huge as one can be counted as an impulse and the other as an “ABC” type pattern. If this were an “ABC” crash, then yes, this market will turn and head higher.  What type of a pattern any big correction will make will determine how far it can go, as inverted “ABCs” get completely retraced.   

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Mini DJIA Intraday Crash Review

YMM16-April-29-2016

The DJIA  is making a decline that can still go many ways. This is not a great looking impulse at all but can still double as a 4th wave correction. As I post the DJIA is still heading down. Remember that AAPL is in this index so where the DJIA goes so does Apple’s stock.  Apple has also broken to a new low but it has a huge gap above that will get closed in time. When is impossible to determine at this point. 

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HDGE New Record Low Review

 

HDGE-April-28-2016

 

HDGE is a good inverse indicator of the stock market as HDGE crashes when stocks begin to soar. All the choppy rallies have now all been confirmed as bearish rallies as all bear market rallies eventually get retraced. From the November bottom to the 7 wave count February top, they have all been retraced followed by a very impulsive 5 wave decline.

Will HDGE go to zero or suffer an inverse stock split? I doubt it! It’s high time the markets corrected or changed a major trend, so we have to wait what type of rally will be produced next. It’s all about pattern from my perspective and price has little to do with it. 

The first two chapters in the Elliott Wave Principle (EWP) all deal with pattern as virtually no prices are used. Even the very first Elliott Wave published by RN Elliott and republished in the yellow book, deal strictly with patterns not prices.  

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Mini DJIA Intraday Review

 

YMM16-April-28-2016

Anything can still happen as all the DJIA has to do is rally one more time and we have yet another 5 waves pointing up.  There is very little room to move and right about now I would love to see this pattern break to the downside to help confirm a potential impulse type wave.  

Many times I will not fill in every little wave count as that is very silly and time consuming. All it takes is one critical move the wrong way and the next thing you know the entire wave count has to be redone.  I post far more frequently than many other wave counters do and it means the difference between doing 8-13 positions or 89 positions.  Did all that fancy detailed wave counting help at the 2009 bottom? No, it did not, as all the SC and GSC degree wave counters missed the biggest bull market since the depression. 

It also makes no sense anymore, that our present bull market is just another big bear market rally as it would be the biggest and longest bear market rally in financial history. Besides, there is no such thing as a double expanded flat top.  Any expanded flat top is extremely bullish once the bottom is in, as they also do not produce the super long “C” waves that the SC and GSC degree wave counters desperately need.  They have started their 5 waves down in Primary degree many times since the 2000 top, but it has failed every time.  

There is no certainty that wave three in Cycle degree has completed, but it would take a Primary degree correction to fully play out before the 4th wave bottom shows itself.   I don’t think we will see a huge Cycle degree 4th wave triangle as that would not have enough time to finish by the 2020 time period, after all the Roaring 2020s may start by then.   

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