...........Early Strength Probably Will Be Followed By Weakness

An Elliot Wave B short term upcycle appears to have begun. The XAU Put/Call Ratio correctly pointed to some strength today as discussed earlier and XAU Implied Volatility points to some weakness that may have begun at about noon EST. I may buy some XAU Calls for an overnight trade.

Notice how the S & P 500 (SPX) took a dive today at about the same time as the XAU and it's uptrend began a little before the XAU's http://finance.yahoo.com/q/ta?t=5d&s=%5EXAU&l=off&z=l&q=b&a=m26-12-9&a=p12&a=fs&a=w14&c=&c=%5EGSPC .

Since SPX index funds are the largest traders of NEM they have a huge impact on HUI, NEM, and the XAU since NEM is a reliable lead indicator. SPX appears to have begun a monthly downcycle Elliot Wave A short term downcycle which should prevent HUI, NEM, and the XAU from putting in higher monthly cycle highs.