SPX (S & P 500) Weakness Early Today = HUI/XAU/NEM Weakness
SPX (S & P 500) weakness early today is a major factor behind HUI/XAU/NEM weakness due to index fund trading, see http://finance.yahoo.com/q/ta?t=5d&s=%5EHUI&l=on&z=m&q=l&a=m26-12-9&a=p12&a=fs&a=w14&c=&c=%5EGSPC.
Given/assuming that NEM began an 18 monthish Wave 2 Cyclical Bear Market on 1-31-06 and HUI/XAU did so on 5-11-06 one should be more cautious now about trading long. After this minor intermediate term upcycle since 6-13 peaks I expect lower lows to occur than those that occurred on 6-13. The NEM Lead Indicator at -4.31% versus the XAU last week and at -2.29% so far this week is a strong indication that risk is high right now, though the XAU wants to fill it's upside gap at 159.41 from 5-15.
The Monthly Upcycle began early on Monday 7-24 and a 2% buy signal occurred on Tuesday 7-25. An entry point for monthly cycle traders "should" occur in the next few sessions Wave 3 corrects (Wave 3 tends to be a long short term cycle or this might be Wave 4), but risk is high now. ....... http://www.JoeFRocks.com/
Given/assuming that NEM began an 18 monthish Wave 2 Cyclical Bear Market on 1-31-06 and HUI/XAU did so on 5-11-06 one should be more cautious now about trading long. After this minor intermediate term upcycle since 6-13 peaks I expect lower lows to occur than those that occurred on 6-13. The NEM Lead Indicator at -4.31% versus the XAU last week and at -2.29% so far this week is a strong indication that risk is high right now, though the XAU wants to fill it's upside gap at 159.41 from 5-15.
The Monthly Upcycle began early on Monday 7-24 and a 2% buy signal occurred on Tuesday 7-25. An entry point for monthly cycle traders "should" occur in the next few sessions Wave 3 corrects (Wave 3 tends to be a long short term cycle or this might be Wave 4), but risk is high now. ....... http://www.JoeFRocks.com/
posted by Joe Ferrazzano at
6:59 AM
