Elliott Wave analysis is showing that we could be in a break-down in gold and a surge in the dollar. Here’s the details…
Westpacific Weekly Trading Forecaster Newsletter
Knowledge is encoded in models…
Special Silver Doctors Gold Update
Been awhile since I have written to the Doc; but something happened last week that is critical to this ongoing Gold Trade that must be watched very closely starting next week.
And that is a breakdown of the KEY WEDGE and price penetrating below the W4 low. Its not pretty. Take a look at a zoom of this Model; it is the ongoing Wave 2 correction in The Supercycle Gold Bull Market. Let me add that yes this is a mere correction in a massive bull market, it started in 1998 and completes in 2064. Gold Cycles are very long. We completed the A wave low in 2016 that begin the B wave up; it should have reached at minimum 1483.61 or a 50% retrace. Look at that pattern I have laid out; a perfect 5 wave count; as good as it gets; but at the top of that 5th wave, 1356.57 it froze up. It is starting to look like a 5th wave failure, the problem is it only met two of the three requirements in Elliott Wave Rules to quality. The 3rd wave was not the longest!
There now lies ahead only two support points for Gold and one must hold; if they both break Gold is going to crash. If the C Wave is under way; the price is below $900. Next week those two targets read near 1233 and another 1212. You can see this with the Blue and Black Channel Line I have drawn on this model.
That said; what if this Wave 2 instead of being a simple ABC retrace is instead a complex wave 2 retrace, and instead of 3 waves will do 5 into its low? That changes the picture drastically. I will show you this model, and if we breakdown those channels on the first model, then yes we are in a complex wave 2 that completes below 900 (866.66). Yes they will print a mark of the beast low to play with you. And be warned if we are now in the wave 5 down into a low! The FIB fits perfect at 61.8% and I believe we will see the Simple Model breakdown in the coming few weeks. If so we will see 5 waves down into that low. Trade it!
Will share a few charts about Japan; and a look at my Predictive Model for the Dollar. There is much more that goes into the Gold Trade than just Dollar/Yen; its more complex than ever with China now in the picture.
Email for my newsletter if interested in seeing much more goes into the gold trade.
Also let me add; on July 12th we hit a critical Time Count for the INDU, there is a very good chance we completed the wave 2 of the ongoing wave 3 and are now set to collapse into the low 20,000s or lower. Do not be fooled – these trade tariffs are a game changer for the markets; and it is not just about trade. Watch closely the banks in Germany and France; seeing serious stress there as well. And the bigger problem is China with a Debt to GDP ratio above 250. In addition a key trading model of mine is calling for what I term a J to K wave crash; that could hit at anytime, and the timing risk window grows larger each day into September as that is the lastest time window for it to begin. It’s truly a time to get out of longs.
Westpacific Trend Trading
Glenn Burnett aka West
Publisher of the Westpacific Weekly Trading Forecaster Newsletter
We have many exclusive models including within the letter the Market Timing Barometer which monitors near 100 different stocks; currencies; bonds; commodities and global indexes.
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Gold Model Weekly Simple ABC Wave 2
-1275.04 is Key overhead now.
Gold Model Monthly Complex Wave 2
-Stunning No; and the two models will tell us where Gold is heading into 2019. If the Simple Wave Model breaks below those two last channels then this is the correct model and the correct EW count.
-If that overhead breaks out. Yes this could just explode higher, and note it is calling a collapse in the Nikkei to 7133. Could a collapse in Japan also lead to a collapse in the Yen and a soaring Dollar? That is what this Predictive Model is calling for.
-Now remember that would not be good for GOLD.
-And if my Predictive Model for the INDU is calling for a low at or below 7000, the only way for the market to collapse is a soaring Dollar. Remember, China is a mess; the Euro Zone and its banks are telling me we are going to see a massive run into the Dollar so lets finish with that Model.
-If we we see a complete collapse of Quantitative Easing, that will likely see a massive capital flight to the dollar as the major safe haven. How many more months can Japan print a Trillion Dollars or 80T Yen each year before it leads to hyperinflation?
-You can see we are going to 110, then another collapse to either 85 or 77. That should carry us out into the stock market crash lows in 2020. This all reverses in a massive Sling Shot move; everything soars with massive money printing, including Helicopter Money for a decade or more.
-Inflation will be raging; food prices; enegy prices and everything else going moonshot; and GOLD along with it as an INFLATION HEDGE; money will be growing worthless each year and the Dollar should top out above 155. Then is collapses; the target is somewhere nead 2032.
-China and Russia take over; you ever read Oswald Spengler; The Rise and Fall of the West; you should. Why the West hates Russia is in this book, and it’s because Russia has entered a 200 year cycle and will rule the world with China.
-Last Predictive Model for today as we’ve already have shared enough of what we do at Westpacific Trend Trading.
We have 100s of Predictive Models that have been developed involving 1000s of hours of work. This is a big picture view; but gives you an idea of how you must begin to think, see and look outside the box.
-You can run similar models to get to the correct time and price for Silver as well.
Perhaps we will come back and take a look at those Predictive Silver Models another day.
Editor G. Burnett
Copyright 2018 Westpacific Trend Trading