Today's Strength Is Coinciding With S & P 500 Strength
Notice how closely the XAU tracked SPX (S & P 500) recently: 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 Fed spiked the index fund trader punch today with a $9.25 Billion 1 day Repo, see http://www.newyorkfed.org/markets/omo/dmm/temp.cfm?SHOWMORE=TRUE.
The NEM Lead Indicator was a very bullish +2.06% vs the XAU on Tuesday and was a very bullish +1.29% vs the XAU on Monday. The NEM Lead Indicator was a very bullish +3.54% vs the XAU last week. So, a substantial rebound is likely over the next few weeks, and, cycle highs should occur for HUI/XAU such that their Cyclical Bear Market (began 5-11-06) downtrend lines begin relatively flat, as NEM's did after it peaked on 1-31-06.
Tuesday 6-13 was probably the bottom for this ABC downcycle (probably Wave A down of the Wave 2 Cyclical Bear Market's Wave A down), that is also probably the start of an 18-24 month Cyclical Bear Market, so this isn't really a correction because it's probably the start of an 18-24 month downtrend/Wave 2 Cyclical Bear Market. For recent action 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. ....... http://www.JoeFRocks.com/
The NEM Lead Indicator was a very bullish +2.06% vs the XAU on Tuesday and was a very bullish +1.29% vs the XAU on Monday. The NEM Lead Indicator was a very bullish +3.54% vs the XAU last week. So, a substantial rebound is likely over the next few weeks, and, cycle highs should occur for HUI/XAU such that their Cyclical Bear Market (began 5-11-06) downtrend lines begin relatively flat, as NEM's did after it peaked on 1-31-06.
Tuesday 6-13 was probably the bottom for this ABC downcycle (probably Wave A down of the Wave 2 Cyclical Bear Market's Wave A down), that is also probably the start of an 18-24 month Cyclical Bear Market, so this isn't really a correction because it's probably the start of an 18-24 month downtrend/Wave 2 Cyclical Bear Market. For recent action 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. ....... http://www.JoeFRocks.com/
posted by Joe Ferrazzano at
7:11 AM
