..........................Yup, Weakness

NEM underperformed the XAU by a very bearish -0.83% yesterday on top of a bearish -0.67% on 11-21 and -0.44% on 11-18, so the NEM Lead Indicator correctly suggested that weakness was imminent.

The second short term cycle high of the monthly upcycle since 10-20-05 for HUI/XAU and since early November for NEM occurred yesterday and corresponds to Elliot Wave 3, so there should be one more tradable short term upcycle in this monthly upcycle, meaning that there should be one more higher short term cycle high before the monthly upcycle's parabolic shaped trendline breaks down.

XAU Implied Volatility portends weakness today, falling -1.26% from 28.50 on 11-21 to 28.14 yesterday vs a +0.87% rise in the XAU which is a +0.39% rise in complacency because the XAU wall of worry shrank by -0.39% yesterday. The XAU Put/Call Ratio experienced an unusually large (> 6%) rise in complacency today, falling to 0.58075 today from o.64752 yesterday, which portends strength/an uptrend for much of today's session following this early weakness.

The "Trade the Cycles" chart page is at http://www.joefrocks.com/GoldStockCharts.html and the "Trade the Cycles" web page is at http://www.joefrocks.com/TradetheCycles.html with the gold/silver stock work coming after the major averages. Ciao