Brutal Day For Gold/Silver Stocks And The Metals

Actually, if this decline follows the pattern that occurred from 5-11-06 until 6-13-06 for HUI/NEM/XAU, then this short term cycle low that may occur today is likely to be Wave A OF Wave A of the major downcycle that began after last Wednesday's minor intermediate term cycle highs for HUI/XAU. The good news is that most of Wave A has probably occurred, but Wave C should bring another brutal decline in which the XAU hits 100-110. I'm talking about the Waves of the major correction that began last Wednesday, so, don't confuse those shorter Waves/cycles with the Wave A mentioned in the next paragraphs.

After Wave A down of the Wave 2 Cyclical Bear Market bottoms there will be a lot of ex gold bugs. Today's brutal decline should create a lot of ex gold bugs. The extreme volatility of gold/silver stocks makes understanding cycles crucial.

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=c&p=&a=m26-12-9,p12,fs,w14&c. ....... http://www.JoeFRocks.com/

HUI NEM XAU