Tuesday 11-8 Thoughts

The assessment in my latest weekly update ( http://www.joefrocks.com/TradetheCycles.html scroll down past the major averages work) remains unchanged. NEM outperformed the XAU by a wide margin of +0.62% on Monday 11-7 but on Tuesday 11-8 NEM underperformed the XAU by -0.50%, so the NEM Lead Indicator is slightly bullish so far this week after being bullish from Tuesday thru Friday last week, when NEM outperformed the XAU by +1.82%. The XAU Put/Call Ratio is at 0.80128 as of 11-8 and XAU Implied Volatility is at 33.205 as of 11-7 (is updated late at night for that day).

A big thing to watch now is that HUI and the XAU appear to be on the verge of breaking above their downtrend lines since the 9-30-05 monthly cycle highs. So, they could be about to make a big move in the next week or so, which is exactly what should happen given the monthly cycle buy signals that occurred on 10-24-05, when they had more than 2% follow through after breaking their parabolic shaped monthly downcycle trendlines. See monthly cycle buy signals at http://www.joefrocks.com/GoldStockCharts.html