Note That NEM Hit a Long Term Cycle High

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. HUI/NEM/XAU are probably in an 18-24 month Cyclical Bear Market corresponding to Wave 2 down of the Secular Bull Market/very long term upcycle that began in late 2000. See http://www.joefrocks.com/GoldStockCharts.html. If you scroll down about 10 to 12 charts you'll find the very long term chart of the XAU (done in February) with the Elliot Wave count.

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/