.......What's Going On Cycle Wise Since June 13

After the Wave 1 Cyclical Bull Market cycle highs on 5-11-06 for HUI/XAU (on 1-31-06 for reliable lead indicator NEM) they did a vicious Elliot Wave ABC down up down decline until June 13, which was probably Wave A down OF Wave A down, not the entire Wave A down of the Wave 2 Cyclical Bear Market (see http://finance.yahoo.com/q/ta?s=%5EHUI&t=6m&l=off&z=l&q=c&p=&a=m26-12-9,p12,fs,w14&c). Since June 13 Wave B up of Wave A down has been in effect, with very nice bearish double tops occurring for HUI/XAU at 353.50 on 7-12-06/354.16 on 8-23-06 for HUI, and, with the XAU putting in a rare perfect double top cycle high at 150.70 on 7-12-06 and 8-23-06 (see http://finance.yahoo.com/q/ta?s=%5EXAU&t=6m&l=off&z=l&q=c&p=&a=m26-12-9,p12,fs,w14&c==). If so then Wave C down of Wave A down of the Wave 2 Cyclical Bear Market began after last Wednesday 8-23-06's double tops and a dramatic decline is likely the next few weeks, with the XAU hitting 100-110.

The past ten weeks the NEM Lead Indicator is a very bearish -9.67% vs the XAU. There shouldn't be much relief for longs until 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) bottoms in the 100-110 range (XAU) in the next few weeks. 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/