Wave Counts Clear in the DOW and GOLD, Interesting Times Ahead

By: Enda Glynn | Sat, Jan 7, 2017
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The market burst back into life this week and hidden within the price action are some interesting hints of what is to come in the future.

This weeks daily Elliott waveanalysis turned up some great calls in Cable, USDJPY and Gold, but this weeks price action also revealed something about the DOW which will have ramifications well into the future if I am correct.

Lets get into it shall we.


EURUSD:

On Friday the 30th I published this chart showing the DOW poised to decline in a possible wave three of three, and I said this.

"If I am correct in my thinking, this will be wave 'iii', of (iii) of 3.
So the downside potential is large given the setup. the key level for me is 1.0504,"

EUR/USD Chart 1
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This wave count foresaw a significant decline straight ahead. The market traded down straight out of the gate on Tuesday morning and fell 160 points to the lows of the day.

EUR/USD Chart 2
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EURUSD sits at a very dangerous point right now, with the larger wave count calling for significant declines in the near future. we will track every step of the way.


GBPUSD:

On Tuesday I started the new week and the new year with this chart, which is following the short term setup in Cable, the wave count wave calling for a corrective rally in wave 'c' of wave [iv], and the target was in the area of 1.2380.

At that point the market stood at 1.2240.

GBP/USD Chart 1
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By Thursday evening the market had topped the target and reached 1.2420 – a nice 180 point rally. On Thursday evening I wrote "Cable kept to the script today with a rally to meet the upper trend line on that trend channel.

I think wave [iv] is complete here at todays highs."

The wave count had then called for a decline off the upper trend line, and by Friday's close the market stood at 1.2270

The larger trend is now back in force in GBPUSD which spells pain for future in this market.

GBP/USD Chart 2
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USDJPY:

On Wednesday Evening the market stood at a precipice, and I wrote "I have labelled the price action today as a a bearish setup in a 'i,ii' 1,2 sequence to the downside. The wave 'ii' high at 118.18 is the first level to watch"

This wave count called for a steep decline dead ahead.

USD/JPY Chart 1
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All throughout the day on Thursday, the market dropped like a stone, and by the end of the day the price had declined 230 points in one day.

EUR/USD Daily Chart
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It was a solid move and reveals a lot about the larger trend in USDJPY, which may be at an important turning point in the larger trend.


The DOW:

I have been speaking of a looming disaster in the stock market for a while now, and as the days go by the wave counts in the DOW keep pointing to one larger theme.

That is; we are witnessing the completion of the greatest bull market in living history, right now!

This fact is lost on most people, but it should not be lost on you!

I released this revised wave count on Friday night which is the best interpretation of the ongoing short term action. This chart speaks of a rally that is completing at six degrees of trend.

And the future that is fore told here is not a pretty picture with plain sailing and bright blue skies, it is one of struggle and financial disaster at a scale not seen since the great depression.

In the short term the market will likely skirt past 20,000 and all will seem well. But the message that is hidden in the price action, is one that should be heeded, it is time to start protecting you wealth.

Dow Industrials Chart
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GOLD:

Speaking of protecting your wealth!

The current wave count in Gold is pointing to a serious rally underway.

On the 20th of December I posted this chart and said this

"The decline off that high could be a completed five wave form, if so, it would be a failed fifth wave.
Where wave 5 of the structure does not break the extreme of wave 3. The daily RSI and MACD have now bottomed and are turning up. The signs are in, the rally is coming."

Gold Chart 1
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By Friday's close the Gold price stood at 1172. and the bullish signs keep piling up.

Gold Chart 2
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If the current Elliott wave counts are correct, it spells disaster ahead for the stock market, and a return to a bull market for Gold.

One thing is for sure, things are going to get interesting from here!

 


 

Enda Glynn

Author: Enda Glynn

Enda Glynn
humbletraders.com

Enda Glynn

I class myself as an Elliott wave trader now, but that's not how I started out though! It took me a long time and a whole lot of pain, to finally understand what drives the price and how to use Elliott Wave correctly!

I have been trading for years and I have tested every trading system and strategy under the sun! I used to pick entry points at random based on emotion or news events or something I heard on TV! It did not take long to destroy my capital! I have blown out my account balance before, and I had to start again,

from scratch!

Believe me, I am well acquainted with failure in trading! Im sure that the above scenario is pretty familiar to you too. We have all been there. About 10 years ago I discovered The Elliott wave Principle and its method of market analysis. Since then, I have spent years learning, testing and trading, using the wave principle as the backbone of my analysis. I even went to college to study macroeconomics and econometrics. I graduated with honours degree back in 2012. The financial market knowledge and statistical edge I gained after my degree added another level to my trading. The difference in my trading approach using the wave principle, compared to before, is like night and day.

The price started to move "my way" more and more often. The wave model, offers me a lens to view market action through, which no other form of analysis can do. Elliott wave analysis, helps me answer four key questions when I am contemplating a trade:

• What direction the price is trending.
• How far is this trend likely to go.
• Where can I enter a trade with the best risk reward ratio.
• And most importantly, at what point am I definitely wrong?!

The wave principle helps me improve my trade entry, tighten up my money management and in turn increase profitability. Seeing the waves unfold before your eyes is a very rewarding experience, It is almost like peering into the future! That is how the wave principle helps my trading, and that is why the wave principle will improve your trading. It took a long time to finally master Elliott Wave Principle. After over a decade of hard work, research and learning I can call myself an expert in the field. I regularly contribute to major trading communities at FXStreet, Forex Factory, Traders Planet. I am a chief Elliott Wave analyst at HumbleTraders.

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