Welcome To Monthly Upcycle Elliot Wave 5

So much for weakness. Often shortly after gaps get filled a cycle low or high occurs and that's what happened yesterday. This sharp rally is a clear sign that monthly upcycle Elliot Wave 4 short term cycle lows occurred yesterday for HUI, NEM, and the XAU, because more than 1% follow through occurred today after the short term downcycle trendlines were broken, so short term cycle buy signals occurred early today. Notice that the S & P 500 is up as expected due to the significant rise in fear experienced by SPX yesterday, which is helping NEM because of SPX index fund buying as discussed yesterday.

This early strength was partly gap filling action with HUI, NEM, and the XAU all quickly filling their upside gaps created at yesterday's open. Now that those upside gaps have been filled a significant decline is likely soon, but the indicators suggest that more strength may occur first.

The NEM Lead Indicator is bullish right now at about +0.30% and is very bullish this week at nearly +2.00%. The XAU Put/Call Ratio shot up +4.46% to 0.66857 today from 0.64003 yesterday, which is a very sharp rise in fear that portends strength/an uptrend for part of today's session. XAU Implied Volatility however is very bearish, falling -0.60% to 29.825 yesterday from 30.005 on 11-29 despite a sharp -2.43% decline in the XAU yesterday, which is a very sharp rise in complacency that portends weakness/a downtrend for some of today's session. If you're looking to buy today you'll probably want to wait for a pullback, but you have to look at the cycles for whatever stocks you're trading. Ciao