...........The Fed Spiked The Punch Today

As they always do on Thursday, with a massive +$18.25 Billion in Repos, see http://www.newyorkfed.org/markets/omo/dmm/temp.cfm. The NEM Lead Indicator is a bearish -0.40% vs the XAU right now, was a bullish +0.79% vs the XAU yesterday, a bearish -1.04% vs the XAU on Tuesday, and, was a combined bullish +1.20% the prior two sessions.

Note that NEM hit a long term cycle high and probably a Cyclical Bull Market cycle high on 1-31-06 versus 5-11-06 for HUI/XAU. The wide disparity between when NEM peaked and when HUI/XAU peaked is a strong indication that an 18 monthish Cyclical Bear Market has begun for HUI/NEM/XAU, because NEM is a reliable lead indicator. Since many gold/silver stocks' cycles lag or are out of sync with HUI/NEM/XAU there are still a lot of good investing and trading opportunities in the sector. ........ http://www.JoeFRocks.com/