The NEM Lead Indicator Has Turned Bullish

The past three weeks with NEM outperforming the XAU last week by +0.54% and the prior two weeks by +3.06% and +1.28%. Wave B up began on Monday 5-22 for HUI/XAU, see http://finance.yahoo.com/q/ta?t=5d&l=off&z=m&q=c&p=&a=m26-12-9%2Cp12%2Cfs%2Cw14&c=&s=%5Exau , with the XAU's cycle low on Monday at 133.17 forming a near perfect double bottom with Wednesday's cycle low at 133.19, and, HUI also has a double bottom.

There's no weekly update this week and no new charts, unless I decide to do them tomorrow.

Notice how closely the XAU tracked SPX (S & P 500) recently thanks to index fund trading: http://finance.yahoo.com/q/ta?t=5d&s=%5EXAU&l=off&z=m&q=c&a=m26-12-9&a=p12&a=fs&a=w14&c=&c=%5EGSPC.

The COT data is basically bullish, with the gold Commercial Traders trading substantially net long in the five days ending 5-23-06 and the gold Speculators trading substantially net short in the five days ending 5-23-06 http://www.cftc.gov/dea/options/deacmxsof.htm. However, the significant long liquidation by the gold Commercial Traders and the unusually large long liquidation by the gold Speculators points to some weakness (non contrarian case short term), with most of the weakness probably occurring last week because the data is three days old when released. ....... http://www.JoeFRocks.com/