“I have seen everything that is done under the sun, and behold, all is vanity and a striving after wind”
Ecclesiastes 1:14
There are no words to describe the mess we are in right now.
I even struggle to describe the destruction that is coming our way because of the path of folly that we have followed.
Because destruction is where this path leads,
and in fact destruction is what this market needs in order to wipe out the financialized the world.
We have to get back to reality, back to production that meets the needs of life, back to a banking system that fuels that production, back to the simple act of saving and investing for the long term.
To hell with all bubbles for good.
Here are a few stories that really struck me today, I had to laugh because of the complete disaster of a system we have built.
One Bank Finally Explains How The Fed’s Balance Sheet Expansion Pushes Stocks Higher
JOBS that weren’t even there!
Uber looses $1100 million and the stock rises 9.8% –
We live in a complete fantasy land people, and it is going to come crashing down around our feet.
I hope you gold some gold, a good safe and cash on hand!
Here we go.
EURUSD.
EURUSD 1hr.
EURUSD 4hr.
EURUSD daily.
EURUSD is still sitting on that lower trend channel line today
without making any attempt to turn higher yet.
The momentum on the 4hr chart though suggests a move higher is coming very soon.
RSI has hit 3 month lows while the oscillator is flattening out now.
We will begin to see a bullish divergence develop next week,
and then the price will follow.
The previous low labelled wave ‘iii’ lies at 1.0992.
If we see a higher low complete above that level early next week.That should signal wave (ii) has begun.
Monday;
watch for wave ‘a’ of (ii) to begin to push higher off this trend line support.
GBPUSD
GBPUSD 1hr.
GBPUSD 4hr.
GBPUSD daily.
Cable has now created a double bottom at 1.29 today in wave ‘b’ of (ii).
Wave ‘c’ should begin on Monday,
and a break above 1.3071 again will signal wave ‘c’ has begun.
The sideways pattern is incomplete as I have mentioned this week,
and another rally into 1.3283 again should be enough to close out this pattern.
Monday;
watch for a spike higher to occur early in the week.
1.3071 is the key level to confirm wave ‘c’.
USDJPY.
USDJPY 1hr.
USDJPY 1hr.
USDJPY daily.
The price failed to reach resistance in wave (i) blue today.
This is not a flaw in the bullish setup really,
it would have just been the cherry on top of the really really.
The price fell in a pretty corrective form today,
I have labelled this as wave ‘a’ of (ii).
Wave ‘b’ and ‘c’ should carry the price lower over the next few sessions.
109.15 is the 50% retracement level of wave (i).
So that marks the initial target for wave (ii) now.
Monday;
Watch for wave (ii) to continue to correct lower for the forst few days next week.
We should get the initial move into wave (iii) up by the end of the week.
DOW JONES.
DOW 1hr.
DOW 4hr
DOW daily.
The drop off the new all time high is still corrective so far.
The price declined in three waves off the high,
so I have labelled this move as wave ‘iv’ now underway.
The pattern in wave ‘iv’ could develop into a larger structure next week,
maybe a triangle,
but I will just have to wait and see on that front.
Monday;
Watch for wave ‘iv’ to find a low soon,
and wave ‘v’ should then rally up into the upper trend line to complete a five wave rally in wave (v).
GOLD
GOLD 1hr.
GOLD 4hr.
GOLD daily.
The rise in gold this week is looking more and more like a small five wave rally now.
If it is,
then we may be looking at the beginning of wave (v) already.
The alternate count is allowing for this interpretation now.
So lets see if the price can hold above this weeks low at 1547.
If that level breaks,
the we should expect a drop into 1535 at a minimum in wave ‘c’ to complete wave (iv).
Monday;
watch for wave (iv) to complete early next week.
Then I will be looking for wave (v) to begin with a turn back above 1592.
CRUDE OIL.
CRUDE OIL 1hr.
CRUDE OIL 4hr.
CRUDE OIL daily.
Wave ‘b’ made a slight new low today,
but the price is still holding above initial support at 49.40.
So the wave [ii] scenario is still in play for the moment.
Wave (a) of [ii] is tracing out a zigzag 5,3,5 pattern higher.
So if wave ‘c’ reaches equality with wave ‘a’,
then wave ‘c’ should hit 53.20 to complete the larger wave (a) early next week.
Monday;
The low at 49.40 must hold.
watch for wave ‘c’ of (a) to push higher again over the next few sessions.
S&P 500.
S&P 500 1hr
S&P 500 4hr
S&P 500 daily.
The S&P has also created a three wave correction into todays lows.
This suggest wave ‘iv’ is complete now,
and wave ‘v’ should push higher next week.
Wave ‘v’ will meet the upper trend line at 3400 give or take a few points.
And when that happens,
I will begin to look for a sign that the price is turning down again.
Monday;
Watch for wave (v) to complete by Wednesday.
Wave ‘v’ of (v) should hit the upper trend line and close out another five wave move in wave (v).
SILVER.
SILVER 1hr
SILVER 4hr.
SILVER daily.
I am noticing a clear range contraction over the last few weeks off the wave [i] high in silver.
There is a chance that wave (b) of [ii] is tracing out a triangle,
If the price rallies back above 18.10 again in next few sessions,
that will rule out this alternate count idea.
Also,
if the price rallies back above 18.34 again next week.
That should confirm wave (i) of [iii] has begun.
Monday;
watch for 17.45 to hold and for a rally to begin in wave ‘iii’ of (i).
U.S 10YR.
US 10YR 1hr.
US 10YR 4hr.
US 10YR daily.
Bonds have rallied off initial support today in a possible wave (ii) correction.
The Price must now hold below 131.89 in wave (ii),
and then turn lower again to begin wave (iii) next week.
If wee see a sharp move lower to break 128.89 again,
that should confirmt he top is in for wave ‘2’ at 131.89.
Monday;
Watch for wave (iii) to turn lower again and break support at 130.20.
I hope you all have a nice weekend.
See you back again on Monday evening for more documenting the madness of crowds.
God bless and God’s speed to you.
enda.