NEM Underperformed The XAU By -0.33% Today

NEM failed twice today (early and late in the session) to fill the upside gap at 57.21 created at the open, which is another bearish sign in addition to failing to fill it's upside gap near 59 during the last three sessions last week.

Fed Credit so far this week is a respectable +$7 Billion 1 day Repo today ( http://www.newyorkfed.org/markets/omo/dmm/temp.cfm ) after a large $10.00 Billion 1 day Repo yesterday, which has had the effect of propping up more than spiking, which is a sign that more weakness is to come, as is 1-18's 2% sell signal, a very bearish NEM Lead Indicator last week at -4.36% vs the XAU (was -0.33% today and +0.18% yesterday), and of course NEM's inability to fill two upside gaps recently.

Federal Reserve Bank Credit appears to be a very reliable short term cycle indicator (based on backtesting) when it has a substantial weekly change or a large daily change, but cycles are the primary consideration by far. A very sharp decline in gold/silver stocks began on 1-17-06 that probably is the major upcycle's (since 5-16-05) Elliot Wave 4 down. See http://www.joefrocks.com/GoldStockCharts.html for HUI and NEM's latest 1 year charts that show the Elliot Wave Points.