NEM and the XAU Filled Downside Gaps Today
NEM and the XAU filled downside gaps today that were created at yesterday's open at 50.69 and 141.14, and, the XAU filled it's downside gap at 139.71 from Tuesday, but, the XAU barely missed filling an upside gap from today's open at 143.24, with a session high 143.23, which jives with the bearish case (is a bearish sign because it's probably a breakaway gap to the downside). The monthly downcycle began on 8-9 for HUI/NEM/XAU when HUI put in a near perfect bearish double top at 348.84 versus 348.74 a week prior (8-2).
I expect Wave A down of the Wave 2 Cyclical Bear Market (since 5-11-06 for HUI/XAU and since 1-31-06 for reliable lead indicator NEM) to bottom in the 100-110 range (XAU) in the next few weeks. The prior eight weeks the NEM Lead Indicator was a very bearish -8.18% vs the XAU, and, so far this week it's -2.09% vs the XAU, for a total of -10.27% vs the XAU the past eight weeks and three days. For recent action see http://finance.yahoo.com/q/ta?s=%5Exau&t=5d&l=off&z=l&q=b&p=&a=m26-12-9%2Cp12%2Cfs%2Cw14&c=. ....... http://www.JoeFRocks.com/
I expect Wave A down of the Wave 2 Cyclical Bear Market (since 5-11-06 for HUI/XAU and since 1-31-06 for reliable lead indicator NEM) to bottom in the 100-110 range (XAU) in the next few weeks. The prior eight weeks the NEM Lead Indicator was a very bearish -8.18% vs the XAU, and, so far this week it's -2.09% vs the XAU, for a total of -10.27% vs the XAU the past eight weeks and three days. For recent action see http://finance.yahoo.com/q/ta?s=%5Exau&t=5d&l=off&z=l&q=b&p=&a=m26-12-9%2Cp12%2Cfs%2Cw14&c=. ....... http://www.JoeFRocks.com/
posted by Joe Ferrazzano at
11:18 AM
