Monthly Downcycle Wave A Short Term Downcycle
Appears to have bottomed late yesterday: http://finance.yahoo.com/q/ta?s=%5EHUI&t=5d&l=off&z=m&q=c&p=&a=m26-12-9,p12,fs,w14&c=
HUI fell over 15 % in less than three sessions. So, a Wave B short term upcycle is probably in effect. Based on the extreme fear level (XAU Put/Call Ratio at 1.69138 today and XAU Implied Volatility at 41.545 yesterday) and the COT data in recent weeks, which doesn't remotely show a level of short selling or long liquidation by the gold Commercial Traders one would expect to see near a major cycle high, the major upcycle since 5-16-05 appears safe. One more monthly upcycle is likely, then the major upcycle may peak. ....... http://www.JoeFRocks.com/
HUI fell over 15 % in less than three sessions. So, a Wave B short term upcycle is probably in effect. Based on the extreme fear level (XAU Put/Call Ratio at 1.69138 today and XAU Implied Volatility at 41.545 yesterday) and the COT data in recent weeks, which doesn't remotely show a level of short selling or long liquidation by the gold Commercial Traders one would expect to see near a major cycle high, the major upcycle since 5-16-05 appears safe. One more monthly upcycle is likely, then the major upcycle may peak. ....... http://www.JoeFRocks.com/
posted by Joe Ferrazzano at
7:04 AM
