Trade the Cycles

Monday, March 20, 2006

NEM Lead Indicator = -0.46% Vs The XAU Today

It looks like the XAU will fill it's downside gap at 130.25 from 3-15 tomorrow, and, the monthly upcycle's Wave 2 short term downcycle may bottom shortly thereafter, with the NEM Lead Indicator being a great aid in assessing that once the gap gets filled. http://www.JoeFRocks.com/

posted by Joe Ferrazzano at 1:11 PM

6 Comments:

  • Joe,

    Short wave 3 is supposed to exceed the previous peak, right? That sounds like a pretty tall order, but I'm hoping, since I started buying back the trading positions today.

    By Blogger Jeff, at 6:56 PM  

  • Right Jeff, the monthly upcycle Wave 3 and 5 short term cycle highs have to be a succession of higher cycle highs. Keep in mind that the major upcycle since 5-16-05 is in Wave 5 so they should be going gangbusters.

    By Blogger Joe Ferrazzano, at 8:19 PM  

  • You should have waited for the XAU's downside gap at 130.25 from 3-15 to get filled and for the NEM Lead Indicator to turn bullish though before jumping in, but you should still do well.

    By Blogger Joe Ferrazzano, at 8:21 PM  

  • You're right. And I'm always early - saw things within a couple points of the gaps just from eyeballing them and jumped on.

    By Blogger Jeff, at 6:30 AM  

  • Oh, I think we had a miscommunication on the question. I didn't mean to ask whether the wave 3 peak should be higher than the wave 1 peak. I meant to ask whether the minor wave 3 must exceed the previous intermediate peak (in this case the big wave 3).

    By Blogger Jeff, at 7:01 AM  

  • Jeff,

    The monthly upcycle's Wave 3 short term cycle high probably won't exceed the Wave 3 minor int term cycle high at 157ish on 1-31-06 for the XAU.

    By Blogger Joe Ferrazzano, at 8:25 AM  

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