Elliott Wave 5.0 "Reboot"

Friday, November 18, 2016

US Dollar Potential Bull Trap Review: 2008-2016





This week the US dollar created an upside breakout which many analysts can call a very bullish move.  I see the entire US bullish phase as a big 8 year or so bearish rally, not as some impulse soaring to extreme new record highs.  I love to see those big long spikes on the daily and weekly charts as any vertical move like that can never be maintained.  I see this as a potential "D" wave top in a Primary degree which the EWP book describes as a big bull trap and large degree "D" waves should always be sold when that peak arrives. 

If there are any futures traders that are presently in long positions, then you will get stung soon.  Of course you will also miss out on a great USD short trade at the same time.  No trader presently in a USD long position can stay long on the next trip down. 

There is always a huge amount of sell stops below any present price level, and once they get triggered all the bulls will turn into USD bears very quickly, as the stops get triggered in a domino like action. 

The entire USD bullish phase should eventually get completely retraced, and it may take a few years to complete, but the downward move should give us another zigzag in Intermediate degree. (5-3-5)

This "D" wave could also coincide very well with a Cycle degree top in stocks, so the USD bear market could signal the end of the stock bull market.  USD in a vertical position, along with stocks, and gold pointing down also can produce a massive reversal. At this time, I can see that this three way  trade setup should happen many more times. 

Saturday, November 12, 2016

Gold Bear Trap Review




The wild ride last week sent gold up, then down again.  This does not change any bullish outlook I have at this time. The impending Donald Trump presidency had virtually no effect on any large degree patterns,  that I'm presently working, except for some short term moves which is normal most of the time. 

We see the long spike pointing down, and if we are looking, the USD and stocks are pointing up! 
This is a classic setup for a potential reversal that is not just a short term trip, but a longer move that will force all those bears to completely reverse their positions. 

Of course not too many traders make catching a falling knife a habit, as they are fearful that much more downside is to come.  Of course we become fearful because we are betting with too much of our account net cash, and fear of losing money overrides all other fears, even though we are in a potentially very big bull market, yet to come.  We may see a bit more downside, but we are at about a 48% correction at this time. 

Most gold related stocks also saw about the same percentage of a decline with their corrections.  

We also have a fantastic H&S pattern being setup, and we all  know that they can be very bullish indicators.  How far a Minor degree "C" wave bull market will go, is never perfectly clear, in the beginning of a strong reversal, but I use 2-3 different calculations to come up with a potential $1500-$1600 price target at this time. 

Remember, that above present prices, there are protective buy stops always hanging around, which can turn all these gold bears into instant gold bulls.   

 Donald Trump took the heartland of the USA, as the entire west coast and many states on the east coast voted for Hillary.  I got a big chuckle, how all the expert surveys proved to be wrong. Sounds like what stock market analysts do all the time. 




Saturday, November 5, 2016

Crude Oil 2008-2016 Cycle Degree Review



With these weekly charts the pattern changes and the prices are different as well. Sometimes they are only a few dollars apart, but the 2016 bottom price can be much different.  The Cycle degree peak is still alive and well, which was followed by one crazy bear market that ended up with an extreme bottom in early 2016. I believe this huge bear market can fit into a zigzag with diagonal waves ending in 2016.  Ok, but the 2016 low, may just be just an “A” wave bottom in Primary degree.  This means we have a huge bear market rally coming, but this rally will be so large, that everyone will eventually throw in the white towel and call it a, “Bull market”.  Of course, as soon as the media declare it as a bull market, It will be ready to crash once more. 
Right now oil is still very cheap when compared to gold, with a ratio of a bit over 29:1 so there is lots of upside still built into the oil price.  Since the late 1990s, we have had 3 crude oil gluts and when each glut was declared and recognized by the public, what do think happened? The price of oil soared each time, and in 2016 it was not any different. 
Most experts were tripping over their forecasts and bringing lower forecasts all the time., yet the oil market rallied in a near vertical line.  At our present peaks we have what looks like a great H&S pattern with another recent peak that looks expanded with this chart.  These are two very bullish patterns for the long term, as H&S patterns have been known to be very bullish. Especially when this happens close to another major bottom as well.  
The other very important pattern that is still in progress is the expanded flat, which comes out well in this weekly chart but is invisible on the daily charts.  This has all been happening around the $50 price level, and now has push the price of oil downward. It would not surprise me, if oil stopped closer to the $40 price level before it started to crank up again. 
We hear all sorts of stories about oil becoming obsolete, or that electric cars will take over. I think that is all wishful thinking and stories that analysts write, to make them feel important. There is no shortage of energy on this planet, only the shortage of thinking power to make it happen. 
Since about 2010 there is the start of a huge chart curve where the majority of nuclear power generating plants will be become old and dangerous and slated to be shut down, so don’t call the end to oil just yet. 




Thursday, October 27, 2016

Nikkei, Mother Of Bear Markets Review.




Most of my Nikkei wave counts are on this site so I thought I would add another one as it sure e looks like a massive bear market. Such a big bear market must be at least a SC or GSC degree pattern.  

Looks are always trying to deceive us and this bear market is not any different.  The largest physical waves are equally smaller in degrees, because once they stretch it is the smaller degree levels that come out of hiding, not the big degree levels. 

I have had a Cycle degree as my top in 1990 for a long time and only ran SC degree briefly. This is a triangle in Cycle degree and I must not label any peak higher than Primary degree, no matter for how long it lasts. 

Up to the 2015 peak we are now in the 25th year of this bear market, which has nothing to do with even Fibonacci turning years, but it has more to do with the big 30 year cycle. That 30+ year cycle may come to an end by 2021. 
This is about the same time that US based stocks may also hit a bottom, along with the US dollar.

What is very interesting is that the Nikkei "D" wave peak matches the US dollar "D" wave peak, so close that it's scary.  If the Nikkei has already finished the "D" wave peak, then there is little doubt what the Nikkei will eventually have to do. 

From the 2009 bottom the Nikkei rallied in a zigzag type fashion, to about 21,000 which means that the 2009-2015 rally should get completely retraced, in the next 5 years or so. 

It will not go down in a straight line, but we should get an Intermediate degree counter rally to confuse and trap all the Nikkei bears. 

This chart is also done with monthly bars which eliminate many of the little wild gyrations, saving us a lot of wave counting time. 

Massive bull markets are breeding grounds for massive bear markets, and the Nikkei displays this very clearly. 


Saturday, October 22, 2016

Gold Daily Chart And The Impending Bear Trap!





In late 2015 the gold price had bottomed at about the same time that the US dollar hit a top at the 100 price level. The gold swing of 5 waves up was definitely a diagonal move, and our present decline sure looks like it was just another corrective move.  Commercials added to their long positions last week, which is a very bullish sign. Meanwhile the trend chasing speculators, added some more contracts to their short positions. It is the trend chasers (managed money) that are wrong most of the time, as they are guaranteed to get themselves into a trap. 

Last week gold may have seen its bottom from which it should break out in a "C" wave bullish run that may shock us in how fast and far any gold move can make.  I always look for bullish moves when the general market participants are very bearish, as that is what EWP is all about. If any one of my wave counts do not support the contrarians with their bullish outlook then chances are very good that my wave count is wrong. 

This was very well demonstrated in stocks in early 2009, as wave counters missed an entire bull market, yet all the contrarians were very bullish at that time. Insiders buying their company stock as it was crashing, are considered part of the contrarian crowd.

There is no difference in gold as they all hated gold back in 2015 as well. Look what happened from that 2015  bearish mood. I believe we bottomed at a very high degree, so this gold bullish phase has still lots of room to go north.  Any "C" wave bull market can produce a vertical move as the stock market and the US dollar crashes. 

A bullish gold price could be joined with a bullish Euro move as well, so at this time the Euro bears would also be in a bear trap. 




Thursday, October 13, 2016

US Dollar Cycle Degree Bull Market Review




Many will not agree with this outlook, but for a long time any bearish wave counts I ever did have were failures, as the US dollar kept pushing higher.  You can only beat a wave count to death for so long, after which you have to give up and join the bulls. 

The 2008 bottom was a major bottom that will not be broken for a very long time if ever. I documented that bottom in great detail and from major bearish bottoms, we get major bull markets. 

I also said many times,  that the USD needs far more height, before a major decline can happen, otherwise it would go to zero.  The US dollar will not go to zero as much as everybody thinks or wants it to. 

                                   Of Two Minds - Is the U.S. Dollar Set to Soar?

 Charles Hugh Smith has also published a very bullish USD report and I mentioned to him in email that I can confirm or agree with his assessment at this time.

This bull market is far from over as it is in a cycle degree bull market that could eventually head to a Supercycle degree wave 3 bull market top. 

Yes, this can still correct downward to below 92, but the USD is also in a diagonal bullish move at this time. This happens in 5th waves not in potential 3rd waves.  This clue is telling us, that any  Primary degree 5th wave will be the longest wave. Extended 5th waves happen frequently in commodities and all currencies are commodities as far as I see it. The last time I checked paper and coins are still commodities.

Last week many of the commodity peaks have been recalculated with Cycle degree tops, which oil was the first to peak and gold followed 3 years later in 2011. 

It could take the USD from 2008 to 2021 before it hits a major top which would help the case that the stock market will enter the Cycle degree wave 3 top soon as well. 




This was the profile I created when the USD was approaching a major bottom. Major bottoms are the breeding grounds for major bull markets, so until we complete a major spike to the upside our present  bullish phase is far from over. 








Thursday, October 6, 2016

Euro Cycle Degree Crash Review!





Recently I have been updating several key Cycle degree wave positions. The Euro so called bear market may be much bigger, than we can imagine at this time, in October, 2016.  It is the Euro that is the reverse of the US dollar, as the US dollar is in a huge bull market of the same degree. 

The 2008 peak of the Euro is now home to a Cycle degree wave III position, which is now followed with a 1-2, 1-2, and another 1-2 wave count.  I still expect a rally to new highs, but this should come to a halt, after which the Euro should resume its bear market with a vengeance. 

The Euro should bottom below the 1985 bottom on a Cycle degree 5th wave decline. This decline bottom would then bring any Supercycle degree pattern closer to us, but it also could be the setup for a Euro disappearing act.  

Any newer Euro low, will help to confirm that the Euro bear market is still alive and well.  
-------------------------

Updated October, 14, 2016




The big monthly chart above, I showed you a potential wave three being the largest wave. The decline at this time is extremely choppy, which means we are in a 5th down not a wave 3.  What this does, is tell us that the last 5th wave of a Primary degree, will be an extended one.  This would be an obvious and blatant divergence from gold, as for 8 years or so they were best of friends. 

Since this entire decline sure looks like a diagonal, we have to keep it in mind, that we could be at a Primary degree already.  If that were the case, then yes, the Euro could have a very big upside move.

I will update this posting next month and look for a Primary degree bottom.  

Wednesday, August 31, 2016

S&P Midcap E-Mini 2000-2016 Review




I always like to remind readers that a very high majority of my postings, are made fresh everyday. Once reason I do this is to always get in a good habit of reviewing the past, as without the past, we have nothing to wave count with, or at least anything that makes sense. This Midcap index has a fascinating pattern as it is so close to being a perfect impulse that it is a joy to work with. 

If we start at the 2000 peak, and then the markets crashed produced a flat that even included an expanded pattern. Then from late 2002 the bull market until the 2007 peak, formed a very good impulse as well. That 2007 peak ended up with a wave 3 in Primary degree followed by another flat type crash. 

Now at the bottom of 2009, this chart hit another ending triangle, before it started to soar up again. From the 2009 bottom to our present top is a pattern that does not follow the basic impulse script, but I think it follows the Diagonal5 script very well at this time. 

I have tried every other bearish rally wave count, and they just kept falling apart and therefore should have been abandoned a long time ago. For the last 16 years not a single SC or GSC degree pattern has been confirmed. Not a single set of 5 waves down in Primary degree has ever happened.  There was never any room for an additional 5 waves down in Intermediate degree after the 2009 bottom.  
  
If only all the wave counting experts were screaming bullish warnings at the bottom of 2009, we would have some rich wave counters around. I figured we would get about an 80% recovery, but this proved out to be way too conservative. 

So where does that leave us now as the markets wobble at major highs?  The potential for the markets to be at a close "D" wave top, is just too hard to ignore. Until that triangle is confirmed or fully discredited, the potential for wave three in Cycle degree is still ahead of us. We could swing widely right to 2017 when the 30 year 1987 anniversary date is due. Years ending with a 7, are bad luck numbers, not good luck, as the markets can take a big beating in those years. 

Sunday, August 14, 2016

DJIA Weekly Chart 2007-2016 Review




Last week the markets were pretty slow as many traders are gone for holidays or other reasons. The DJIA has only moved up in small increments which is usally a sign of a slowing market. In the markets, "looks" are always deceiving, especially when it comes to any wave counts we can produce. 

When wave analysts declare a wave count position that "looks" clear, then chances are good this will  not be the right wave count. I have worked the 2009 to 2015 run using every trick in the book. Sooner or later we run out of options, and when that happens, we have to completely redo every wave peak as far back as necessary to find out what went wrong.  

Every major wave analysts had the 2009-2015 bull market as a huge bear market rally, and they were waiting for the "big one" to come. Obviously the big one hasn't arrived, which should be a lesson for all of us, that our wave counts are dramatically off track. 

If a wave count did not prepare you for the 2009 bottom, and the following bull market, then what good is this type of wave analysis?  Now we are on the opposite side of the game, as we try to see if a real top is going to happen. 

It is futile for me to work the same wave count as all the rest, because then I'm just following the herd as well. If the wave count I have, has any validity to it, then the wave positions in 2007 and the 2009 bottom will never be needed to get changed anymore. If a wave count does not work any better in 1-2 months, then chuck it and find a better fitting pattern. 

So if the 2009-2015 bull market is not a big bear market rally, then what can it be? The answer lies in how well we use the diagonal wave pattern, especially the diagonal 5th wave.  I have switched back and forth several times and now the diagonal makes a very good fit.  What degree this diagonal wave is, must be kept in sequence to what happen in early 2009. We should get 5 diagonal waves up, but uncertainty as to where the 4th wave is, still remains. 

My trend lines will fool us, as the markets are between two channel line extremes, and it seems like it is rolling over. Rolling over can mean many things as 4th wave corrections look like they are rolling over. 

All the wave counting I do is based on finding the real 5 waves in Cycle degree, as without them we don't have a base to work with.  If Cycle degree wave 3 is still ahead of us then we can look at the three simple core patterns, that may unfold in the next 4-5 years.

My two favorite corrective patterns for Cycle degree wave 4,  is a zigzag or a flat. Once we calculate out all the required wave counts for these two, then we know all the idealized wave structures we should get.  Any Cycle degree wave 3 peak I want, will last forever as no higher degree can exist without finding the Cycle degree base first.  

The market gyrations has more to do with anticipating a winner in the US elections, as stocks hit world record highs. Any "E" wave decline I may get will have a bottom to it, so until that is cleared up, we have to keep our short term options open. 







Wednesday, July 27, 2016

Crude Oil Bull Market Review



I will occasionally post something on this blog,  but only some bigger wave counts. I am sure you have heard all the bearish ranting going on, regarding the oil's summer decline. We were expecting it, and now we have to find a bottom that will hold. Any wave 2 will do that, but a wild guess at a support price level will not.

Diagonal waves don't have your normal impulse retracements, as a short free fall can turn quickly and soar the other way.   When the mainstream media is this bearish this early, then a rally  or a complete reversal should still be in the cards. Short term we can still have some downside left, but longer term I expect WTI crude oil to double or even triple from todays price levels. 

Not until we get close to a gold/oil ratio below 17:1 will we get close to a major top. In the last few days the gold/oil ratio has been around 29:1 

Sunday, July 17, 2016

Elliottwave5, "The Gateway To Cycle Degree Elliott Wave Analysis"


In the last several months I have been very busy with posting and maintenance on my new site,
 ElliottWave5.Com | The Gateway To Cycle Degree Elliott Wave Analysis.

When I looked at some of my stats I saw that the majority of visitors to my new site came from a direct link from Elliottwave 5.0 "Reboot".  I consider this free blog as a Gateway to Elliottwave5.   I will be doing some posting here, but with no set times or frequencies.  I will try and post something every month or so, but in general there may only be scattered postings to keep the free readers entertained and informed from time to time.

We still get 100-200 pages read per day on this blog, so that is a huge drop from 1000 or so pages read per day. This was all expected as the initial rush to the new site at EW5 has now settled down.

About 2 new members sign up every day to get their month free access to all my work. During the week I also  try and post 2-3 times per day, so there is always a fresh wave count going up during the week.

As of July, 16, 2016 many of the membership fees have been reduced to a flat rate for everyone. What differs between the plans is the amount of time you can buy at once.

This now works better for different budgets, and works out to about $7.50 USD per month.
Like a Netfix subscription, just cheaper. You can sign on with a $15 two month membership, so this effectively doubles your time that you would have had to pay for this entry level membership.  

My theme for the new blog is that it is a "Gateway" which means all my work is done using Cycle degree (or lower) wave analysis.  I started switching to this lower degree in mid 2013. I have not had to switch back up one higher degree again, and so far nothing that the markets have done for the last three years, has changed my mind.  This is the longest time that I have ever stayed in a certain degree, and I view that as a very good sign.  Now we just have to figure out where the home is for the real Cycle degree wave three.  Did a Cycle degree wave 3 top finish behind us in time, or is it still to come in the next few years or so?

My work is dedicated to finding the real home for Cycle degree wave 3, so if you're expecting fancy trade setups, or some impressive SC and GSC degree wave counting gymnastics, you will not find them on the new blog.


All the wave analysts in the world follow a certain degree, but that degree must also get confirmed in some way or another. The best way to confirm any count is when a 5 wave sequence develops and see what degree this 5 wave impulse really is.  Every degree correction has a specific idealized wave count that we should have, and to draw them out is still the best way to visualize them.

The cutoff is the degree of any 5 waves, that the markets can throw at us.   Five waves down in Intermediate degree would be my maximum that I can have after any Cycle degree wave 3 top, so when wave analysts start looking for 5 waves down in Primary degree, I know they are working in a SC, GSC or higher degree level.

The majority of all expert wave analysts today are using at least a wave count, 1-2 degrees higher than what I work with, but they "ALL" need  the same Cycle degree tops like I do.  In a very blunt, and simple statement, "we will never find the highest degree levels if we don't find all the lower degree levels first".  It is strictly a mathematical and sequential thing, so the changing of a degree is not something you should do without any thought or any review.


All the problems with high degree wave counting is that it produces the herd mentality.  The SC degree herd and the GSC degree herd have for 16 years, been chasing a degree and wave pattern that they must have, yet these 5 waves going down, have never happened since the 1930s bear market.

This is a pretty impressive wave count targeting such a rare wave and degree, in well over 80 some years.

Elliott wave is easier to figure out,  if we use well drawn idealized charts, as I always say, that you have to "see" the waves before you can count them. Wave counting is just a secondary act of confirming what we think we see.

What is worse today than it ever was is that expert wave counters make no distinction between an impulse 5 wave move and a diagonal 5 wave move. They are two different weave structures and they should never be labeled with he same sequence. The Diagonal5 like I like to call them, can happen in any 5th wave in any degree, so the Diagoanl5 work like a location beacon.  Since this summer I started to look at the markets with a diagonal perspective, and all I can say is they are everywhere.

They are so numerous, but yet the book only dedicates a small section to diagonal waves.


I leave you with an idealized Diagoanl5 decline, with 5 waves in Minor degree.  They are both the same and if you want to entertain yourself, try duplicating it on the empty template on the right, after you print it out.  Of course that may sound simple enough, but can you do it without any mistakes the first time you try? 




Wednesday, April 27, 2016

Russell 2000, 2000-2016 Review


My postings on Elliott Wave 5.0 "Reboot" are going to quit today, so hopefully you will join me at the new website. 



This is the cash chart for the Russell 2000 and I still have not found any Cycle degree, wave three top. The implosion into the 2016 bottom is a very well formed impulse wave, but I have to explore it as a potential expanded pattern bottom.

What that means is that if the expanded pattern is true, then at least the Russell 2000 can hit another new record top, closer to the 1300 price level.  We are also approaching the previous 4th wave peak, which is a perfect place to turn and then head back south.

I do not want to completely throw out the wave two option, but it could be a wave two in Intermediate degree. If that declined, then 720 would be a 61% correction, which may not be deep enough to play out all 5 waves.  We know we are not going to get 5 waves down in Primary degree as that would take the Russell 2000 well below zero, and that will never happen.   





Tuesday, April 26, 2016

Gold Intraday Review: April, 26, 2016


This will be my last gold posting on this blog as I will be switching to our new site by May 1st or 
 sooner.  

  

So far gold has made another bullish looking advance, but this is not a pure impulse, but can only fit into a potential diagonal wave structure. Since the beginning of April, 2016 the gold waves have not been the happy bullish waves, we would expect in a true impulse wave structure, but the patterns have been fighting upward all the time.

This is not good in the long run as all these bullish looking waves will eventually all get retraced. $1208 is the low to beat, but hopefully we will see one more high for this gold bullish phase. 

Constantly posting a gold price where it will stop means very little as the pattern is far more important. How it acts or behaves on its journey up is critical to understand as investors can get caught thinking we are in a secular gold market. This I don't think is the case at this time. 

Above all, we want to milk and bullish run to the max, even if it was a fake. Fake money can be turned into real cash when you sell. 

As always, we want to max out the bullish run with any Elliott Wave Count, but it can be much harder to tell if these fake runs are much shorter.  This is especially true for gold stocks. 

Gold stock insiders flooded the gold market with buying in mid 2013 which was very well broadcasted at that time. 

Hopefully we will get the same signals if and when they start to sell.  Steven Jon Kaplan may broadcast it as he is one of the few contrarians that track this kind of data. True Contrarian

  


    


Mini DJIA Intraday Review: Here We Go Again?



I want to let all readers know that Elliott Wave 5.0 Will be changing its name and moving to this new site by May 1st or sooner.  All readers to the new site will get a free month while we are in transition.  My postings to this blog will slow down with my commentary reduced as well. 



Here we go again as the markets seem to be starting into another impulse type move.  If this is the case, then the DJIA can breakout with yet another new high and there even could be a possibility of creating a new bull market extreme.  

Since I have what looks like a small degree correction, but if a newer high is lethargic or very slow in coming, then we could end with another "C" wave peak followed by another crash. 

Monday, April 25, 2016

Important Notice: Elliott Wave 5.0 "Reboot" Is Moving.


I would like to inform all my readers that by May, 1, 2016 I will no longer be posting on this blog.
All new posts will start in May on our new web site.

ElliottWave5.Com | The Ultimate ElliottWave Charting System Online Since 2010

All readers that sign in on the new blog will get a free month until they have to decide if they like to use a paid membership structure. 

All those that have donated already will get a free year membership at the new web site. 

US Dollar 2010-2016 Elliott Wave Count Review.



The US dollar has been very frustrating to count out, but I will give it a chance to see if it still is going to hit close to my 92 price level with a 4th wave bottom. My "D" wave rally should still see a complete retracement so we have to see if that will still happen. 

Commercial traders are still net short on the US dollar, which is still bearish. It is when they switch to a wide net long position that gold may see some real problems.  Gold has been having difficulty in maintaining a bullish phase, so this could be a problem. 



Mini SP500 2007-2015 Review:



We know that all wave counts are only temporary unless they are perfect. Having a perfect wave count is a myth and an illusion on the part of any wave counter.  I show the wave 3 in Cycle degree at a top in 2015,  but my correction fits better into a small flat than a zigzag. 

A flat leading into a bigger flat is very rare if not impossible, so my wave three would be like Humpty Dumpty ready to fall off the wall. This would also make the 2011 bottom as the start of a massive 5th wave extension which we know was a stock mania move. A stock mania move has stocks and the US dollar roar, as gold and commodities generally crash. 

Stock mania's  have happened many times in market history and they will happen again and again.
We have to spot these moves before they are ready to happen as right now this stock mania is hibernating.  

If and when the Cycle degree is actually finished then we would need a Primary degree flat, or a Primary degree zigzag to complete the 4th wave bottom.   I don't think some Cycle degree triangle is in the cards as the solar cycle will kill that very quickly.  After all the Roaring 2020's will change all that.

As long as there is the slimmest chance that a Cycle degree 5th wave has "not" completed then there is no chance of a SC or GSC degree wave count to infect us! Markets must travel in sequence to the degree not in random fashion. 

Donations Thank You.

I would like to give a big thanks to Peter. D for his generous donation of $25 USD.

E-Mini SP500 Intraday Review: And The Decline Continues!

In the future, I will reduce my intraday postings on weekends and Mondays, but use that time to review some of the bigger wave counts.  


Here we go with another intraday look as this market seems to still be in an impulse heading down. 
I have to start with very small degree levels as my highest level I am showing right now is Micro degree and my smallest is Miniscule degree.  

I have what looks like a perfect expanded flat that formed as the "C" wave also pushed a bit higher playing its part as well. Of course, all this is great, but I know price action can change so fast that at any time this wave count could fall apart. As I post the market has shot back up so we could be at another "ABC" instead of a wave 1-2

I have scratched my head, looking at the big picture and I have not come up with a good wave count for the top.  

Sunday, April 24, 2016

A Look At The KOL ETF Bull Market





Obama has killed off so much of the coal industry, now we are faced with a shortage of coal. Nobody has ever talked about coal being in a glut but when coal mines are shutting down or rendered to dirty we are going to get distortions in the supply and demand picture.  

Coal market fundamentals changed, yet spot prices remained stable - Today in Energy - U.S. Energy Information Administration (EIA)

This ETF is not about coal prices but about the producers as the coal prices are pretty stable.
KOL came to a screeching halt exactly on the $5 Fibonacci number. You can't get and closer to that as $5 can also be a major price point when inverse stock splits can occur.  That fear may no longer be an issue as the KOL price has gained over 61% from its low. ($8.66) is also very close to another Fibonacci number.

We would have to go back to 2009 when we get close to a potential $13 Fibonacci number. KOL would have to break out of my two small trend lines to do that. I think that would be no problem for KOL but we may need to get a correction to blast past that top trend line.

At the very top trend line, we have a potential $30-$34 price level, but we may be dreaming when we look that far ahead.

So far the starting impulse looks pretty good, but we have to watch for a correction that is far too large or far too ugly to fit into a good developing impulse.

It can take years to develop a good wave count and I would have to get data from another site to create a more detailed wave count.

Friday, April 22, 2016

US Dollar Crazy Intraday Moves!



This US dollar rally is still well short of the top trend line, but it does not have to hit it and impress us. Sooner or later it has to head back down as since the April, 12th bottom the rallies have not been great looking impulse waves.  Another decline should be in the cards which should push gold back up  stopping the gold crash dead in its tracks. 

That is the optimistic view, but in the long run I think the US dollar has to rally strongly one more time, breaking out to all time new record highs. In the meantime, we want to milk the US dollar decline as much as possible for all the smart contrarians make their gold investments climb much further. 

Even though the US dollar decline is unclear when it will stop, I don't think it is on a secular crash at this time. The biggest decline in the US dollar has far too many diagonal waves on it so this is not a good think in the longer term. 


Gold Intraday Crash Review



Gold crashed in price to roughly where I expected, even though it traveled a bit further. Gold did not break any major rules just yet so gold should rally one more time if we had an "ABC" crash.  

Diagonal 5th waves can blast upward dramatically in relation to the other waves so we have to be ready for anything at this point. The gold traders would be trying to catch another falling knife and you would have to put your stop below the longest wick in today's downside. I can not give you a price for this as many charts and anything Forex related are at completely different price levels. 

Hopefully this bottom will hold as it would have to hold Sundays opening as well.  

Crude Oil 1990-2016 Review: Glut What Glut?



Usually the rallies are never this large if a world oil glut is going to get worse. Besides the wave structures are far too impulsive at this time as well. It is when we get a serious correction is when we have another look. So far the gold/oil ratio is still confirming an extremely low oil price when we use gold as money. 

I believe the bottom in early 2016  could be a "D" wave bottom in intermediate degree and that we are working slowly towards an "E" wave top in Intermediate degree.  This also could mean that the "E" wave top will also be a "B" wave top in Primary degree, which the brother "A" wave ended in 1986. This makes 2016 close to a 30 year time period with a few more years to go before another major top may appear. 

This eventually calls for WTI oil to exceed $115 again and even create a double top close to that $147 price level. This may seem like oil is in a secular bullish move but all it is doing is finishing a potential triangle "B" wave.  What will follow the "B" wave should not be just a guess, but we would need 5 waves down in Intermediate degree.  This would complete a 4th wave bottom in Cycle degree. 

Also, what price destruction we will get once this "B" wave top has completed should also not be just a guess, as it would have to crash below all my letters since the 1980 peak. This should be close to the $10 price level. This may all happen before the next solar cycle bottom, which still can be 4-5 years away. 

Of course we will also be in another world oil glut,  and panic will dominate the oil market once again. 


At this time I believe crude oil can be in one single SC degree pattern before we run out or simply lose interest due to other means of transportation being developed. This single SC degree wave zero started in 1859! Any single impulse wave structure can be started with a wave zero and my stock Cycle degree wave zero started in 1932.  







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E-Mini SP500 Intraday Review: Always A Bit Different!



A few days ago, the markets have reached a top and have now proceeded on a trip south. As much as many may want to say that the patterns are the same as the DJIA, the fact is there are always little differences that can show us a completely different wave count. 

This wave pattern has crashed through my parallel trend line which can work as an expanded pattern.
Poking through the trend line is also a warning that another wave pattern may be in play. 
This would still need to rally and match a potential small triple top just under the 2090 price levels. 

Of course the wave 3 bottom could be an "A" wave bottom, followed by a very steep "C" wave decline. I have seen many impulse waves start out and then fall apart very quickly so I don't create the hype machine calling for the "big one" or that the wave count, "is clear".  The wave counts are never clear because when they are clear they are fooling us. Are the waves, clear in SC or GSC degree?  No 5 waves in Primary degree have ever developed since the 2000 peak,  so any SC or GSC degree wave count is a mythical dragon that the most popular Elliott Wave counting sites are all trying to slay. 


I'm only trying to slay the Cycle degree dragon and that is still a myth for now. 

Mini DJIA Intraday Review: Impulse Power?



So far this market decline can fit into an impulse, but it still may have the 5th wave waiting to get completed. Only a true impulse can keep compounding as the waves can build in a 1-2, 1-2 fashion. 
We may still need more downside before the first important wave 1-2 set has shown itself and it usually takes a minimum of three sets in wave 3 to be properly extended. Any 5th, 1-2 set would just about be impossible to see and therefore impossible to count.  

As soon as this does not happen then chances are we would just be in a correction and we would have to look for the correction to end, and then even push to newer highs.  Any other pattern can also be in play so at the beginning of any reversal the impulse can fall apart very quickly. 

The sooner we realize that the impulse is no longer working the better.  One option is we get a 5 wave impulse type wave structure heading down, which would be 5 waves in Minute degree and basically end up looking like a big crash with everyone screaming it's over and the bear market is here.

Of course, as soon as they do that chances are good the markets will stop falling and then really roar and retrace the entire crash and even push to new record highs once again. 

Markets will never do what the public thinks it should keep doing as if they did, everybody would be rich, as the 99% could join the 1% very quickly. We know that, that will never happen. 





Thursday, April 21, 2016

Gold Intraday Price Spike Review



The price spike came within a few dollars of breaking my wave count and that is too close for my liking. The bullish patterns that gold has been making may not be finished just yet as it all can be part of a diagonal wave count.  We have to look for a diagonal 4th wave correction and my bottom trend line would be the boundary that another 4th wave could stop at.  The diagonal 5th wave should then cross to new highs past $1282 or so. 

As of 2016 I draw all my trend lines in parallel to each other, and many times they all have the same angle with many different degree sizes. Yes gold gave us a nice spike which can be the end of a trend, but a correction will mean gold is also not finished.   Any choppy bullish moves are not good signs of a healthy bullish phase, so we have to be prepared for dramatic moves that may be impossible to pick up before hand because they can happen during the night or when I am busy with other things. 

I will not have time to cover other assets today, but will try and cover a few more tonight. 


Wednesday, April 20, 2016

WTI Crude Oil Intraday Review: Keep On Trucking!



The WTI bull market keeps on pushing higher, totally ignoring all the BS (bearish sentiment)  of the past several months. World oil glut? What world oil glut? Supply destruction has been going on with more to come and the inability or unwillingness of many nations to increase production. 
Many crude oil carriers are going around the tip of Africa as it is cheaper to burn fuel than pay the fees going through the Suez Canal. 

We can see how far fundamentals have been lagging the oil price. Since I have no bullish sentiment report,  I rely on the gold/oil ratio to help give us a clue if oil is being overbought. The ratio stands at just a bit over 29:1 which is still very cheap when compared to gold. Once we hit 20:1 or less, then we should wake up and start looking  for a substantial correction.

Right now WTI oil has the most bullish wave count I can find,  but we have to see if it can be maintained. After all, the summer season will be here soon and then the demand picture can change dramatically. 

My "D" wave bottom in Intermediate degree is still in force. What we had from the 2008 peak was one mother big zigzag crash which some are calling a mythical "X" wave. Any use of WXYZ waves is like telling the readers I have no clue where I am and I don't know if it is a flat or a zigzag. 

Using WXYZ waves hide patterns more than they ever help and this is the major reason why I have never used WXYZ waves. I have made it pretty clear my disdain for the use of WXYZ waves as the EWP needs to be simplified and not made more complex like in the little blue book. 

 My version of  EWP is all based on wave two as the base wave count,  not the 4th wave as a base wave count. This is drawn in detail with an idealized 1-2, 1-2, 1-2 and 1-2, base wave counts.
It is only the commodities that may see 5th wave extensions, but with stocks we should always look for the wave 3 to be the longest wave structure.  

Since crude oil basically was born in 1859,  there may only be one big 5 waves in SC degree before it runs out,  or nobody cares anymore. Electric cars will still take decades to make an impact on oil as they need to generate some serious amounts of electricity to run all these new electric cars.




Gold Intraday Review: April, 20, 2016



Gold has finally made a dramatic move to the downside but this can still be a fake move as the drop was at a very steep angle.  Since the beginning of April the moves the gold market has made sure can fit into an ending type move as so many waves overlap each other.  Starting in April,  I had a 7 wave count, which still needs to be completely retraced, but with no time limit. 

It may take another month to do, especially if we get one more gold pop to the upside. This can travel to a new high, but it must not break the $1270+ price level. Trying to catch a falling knife must be accompanied by a stop, mental or otherwise, as we are dealing with intraday price moves that are extremely hard to play.   

E-Mini SP500 Intraday February, April 2016 Review



The markets keep pushing higher above and beyond all expectations.  What else is new as I see it as the job of the markets to keep as many people confused or trapped in one direction as much as possible. Especially all the Elliott Wave counters as we constantly review or update wave counts that have failed or will fail. 

This SP500 has gone too high to where any expanded pattern is no longer viable, but another 5th wave is.  If the 4th wave has already completed with a flat or a triangle, then there is still a chance that we are just coming up to a potential wave one in Minor degree.   We are only a few points away from breaking new record highs and even if they do not do this, we are left with double and triple tops that will take many years to sort out.

Which wave count belongs to the bullish cycle and which belongs to a new trend is not determined by new highs. 

The line I have at the 1920 price level is only the 61% retracement level of the net move from the February bottom to now.  Even that has no meaning as 40 or 50% could work just as well. If a wave 2 decline is in the cards then, it may still take another 5-8 months or so to play out the remainder waves 3-4-5.  Then it would be the job of the next president to screw up the economy again. 

In the long run the markets are going to head into another large degree bear market, but at this time they are having a real problem in figuring out when they are going to do it. 


Canadian Dollar Bull Market Review



The Canadian dollar has been on a tear and at this time no really good correction has happened. Even the bullish phase does not look like your average clean impulse waves so I remain skeptical,  as to how long this can keep going without a good correction. 

Commercials are already in a net short position so that is also not a very promising sign. Mind you the commercials can be in a net short position for a very long time before anything can happen. They need to build a much bigger net short position before it becomes a real problem. 

Way back in March the sentiment hit a low of 6%, but I no longer get that report so I am in the dark as to how high it may have become. Either way there is more upside to come, but a correction sure would be nice. The media has talked about the 80 cent level, which means that the bulls are starting to shine under a spotlight.  When the media focus too much in one direction, then that direction is in 
jeopardy of ending or correcting. 




Tuesday, April 19, 2016

HDGE Another Double Bottom Crash!




From November 2015 HDGE roared, but in a corrective fashion as I count 7 waves for that bullish phase. This is now as good as completely retraced as I'm sure we are just dealing with pennies.  

Even the present decline has many overlapping waves which are not impulse waves, but can be diagonal waves.  Can HDGE go much lower? Sure, it can, but then we are looking at a potential inverse stock split if it does.  If and when we get closer to $5 we could be a setup for an inverse stock split but it's not always a certainty. 

There are gaps in this decline and I am confident the markets will take another hit which would send HDGE north one more time.