Welcome to the inaugural members-only bulletin from the Edelson Institute!
Founding the Edelson Institute was a labor of love for Larry right up to his final days. His last gift to you was designed to accomplish two critical missions:
First, to help you build wealth faster, easier and with far less risk, and …
Second, to ensure his proprietary cycles-based research would be constantly improved to help your investments perform better.
At the very heart of Larry’s unique approach was his intensive study of cycle forecast charts for every major market. He conducted this analysis on multiple levels – daily, weekly, monthly, yearly, even hourly – to accurately predict the most promising trends to profit from.
Larry had the great foresight to pass along his life’s work for our benefit. By combining his four decades of experience in the study of cycles – with computer-driven pattern recognition of hundreds of markets and thousands of securities – we are fortunate to have his Artificial Intelligence E-Wave model to guide our decision-making today. It is Larry’s legacy to future generations of investors.
Beginning with this issue, and continuing each and every month, I’ll walk you through detailed forecasts for stocks, gold, silver, oil, the dollar, plus other key markets as opportunities arise.
So let’s jump right in and get started …
Dow Jones Industrial Average:
As you can see in the latest update to the Dow E-Wave cycle chart above, expect the Dow to snap out of its recent weakness with another move toward recent highs at 21,169 over the next few weeks.
But May and June look more treacherous, forecasting a sustained correction for stocks. That’s why the old adage to “sell in May and go away …” could be very timely advice!
Larry also taught us to supplement cycle analysis with exhaustive technical analysis to identify optimum entry and exit points and help improve market timing. The chart below shows the Dow, with pitchfork analysis drawn from the early 2016 low.
As you can see, the Dow just pulled back to the median trend line, which offered support in June and November of 2016, then again in January 2017. This time should be no different and inspire another move higher.
This extra layer of analysis confirms the E-Wave model forecast, calling for another leg higher into the beginning of May, followed by a correction. But if the Dow does break below the median line, stock prices could easily drop all the way back to lower channel support below Dow 20,000.
You should currently be holding the ProShares UltraShort Dow 30 ETF (DXD) and we are likely to add to this position OR make a new recommendation to profit from the correction we expect. So keep watch for new trade alerts.
Gold:
Gold is likewise nearing a near-term peak. After a brief pullback forecast over the next two weeks, gold should put in a double-top near current levels, then decline into early June, before the uptrend in gold resumes.
Please note: Larry always taught us the direction of the trend is more important than the magnitude of the move. The cycle turning points shown in the chart above simply indicate the likely timing of the next key high or low, not how far gold will rise or fall. Remember to use these charts as a guide, but not as gospel.
Silver:
The E-Wave forecast cycle chart for silver looks similar to gold. Silver should make a slightly higher high in early May, before reversing into a correction into June.
Recall that in February and March we recommended trades to profit from the last pullback in gold and silver. You earned sizeable gains of 20.2% in the VelocityShares 3x Inverse Silver ETF (DSLV) and 37% from the Direxion Gold Miners Index Bear 3x ETF (DUST) the last time around. And we intend to make similar recommendations to aim for more profits on the next pullback in precious metals, but please wait for our signals.
Oil:
Crude oil is nearing its next cycle turn date, indicating a near-term peak in early May, followed by a correction in June and July. Below is a shorter-term pitchfork analysis of oil on a 4-hour chart …
You can plainly see how oil has fallen below the median trend-line, but still within the context of an uptrend. Oil could retreat to lower channel support near $52 a barrel before the uptrend resumes.
This also supports our view from the E-Wave forecast chart calling for another push higher into the beginning of May, before a steeper correction. We will be looking to profit from this correction in oil, same as we earned gains from our recent long position in the United States Oil ETF (USO), so stay tuned!
U.S. Dollar:
The dollar E-Wave forecast chart is almost the mirror-image of gold and silver. We expect a move lower continuing into early May, just as gold peaks. Then the dollar should enjoy a rally in June and July. Again, my team and I expect to profit from this move lower, when the timing is right.
Edelson Institute Executive Briefing Next Week!
Stay tuned for our inaugural, members-only Edelson Institute Executive Briefing next week. In this exclusive briefing I’ll be joined by two important members of my team to walk you through our updates for these key markets, plus more. We’ll also discuss new and upcoming “Buy” and “Sell” signals on specific trades as well as take time to answer your questions. So keep an eye out for your personal VIP invitation for this event.
Good investing,
Mike Burnick
Executive Director
The Edelson Institute
