NEM Underperformed the XAU by -0.59% Today
So, the NEM Lead Indicator was bearish today and was slightly bearish yesterday at -0.11%. Short term cycle traders like myself should get a chance to buy on weakness probably early tomorrow. Normally I buy before a short term cycle buy signal when there's usually a few hours of sideways action following short term cycle lows, which of course is the short term cycle beginning relatively flat. However, yesterday HUI, NEM, and the XAU bottomed just before the close, so I wasn't able to get in.
In the XAU's 5 day chart http://finance.yahoo.com/q/ta?s=%5EXAU&t=5d&l=off&z=m&q=b&p=&a=m26-12-9,p12,fs,w14&c= one can see that the short term cycle buy signal was a healthy one, with a very sharp rise today and an uptrend that lasted about 4 hours. The intraday cycle rolled over however and trended down the last 2.5 hours or so, and, it appears that a significant plunge will occur early tomorrow, possibly after early strength. Ciao
In the XAU's 5 day chart http://finance.yahoo.com/q/ta?s=%5EXAU&t=5d&l=off&z=m&q=b&p=&a=m26-12-9,p12,fs,w14&c= one can see that the short term cycle buy signal was a healthy one, with a very sharp rise today and an uptrend that lasted about 4 hours. The intraday cycle rolled over however and trended down the last 2.5 hours or so, and, it appears that a significant plunge will occur early tomorrow, possibly after early strength. Ciao
posted by Joe Ferrazzano at
1:06 PM
2 Comments:
Ken,
This monthly upcycle Elliot Wave 5 short term upcycle should last about 3 or 4 sessions. NEM should exceed it's prior monthly cycle high that occurred on 9-30-05 above 48. NEM could break above major resistance a bit below 50, so another monster short term upcycle lasting 7-8 sessions like the prior Elliot Wave 3 short term upcycle is a possibility. Good luck. Joe
By
Joe Ferrazzano, at 3:44 PM
Ken,
EW5's can be pretty explosive, but without knowing your time horizons, a week could be just a short uptrend to you.
If your horizons are any longer than that, please consider that this wave up should probably be followed by down cycle for a couple or few weeks. If you are trading longer cycles, then the middle of a 5 up is theoretically not the place to buy.
Jeff
By
Jeff, at 5:26 AM
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