.......NEM Filled Today's Downside Gap At 43.83
The XAU may fill it's downside gap at 125.24 that was created at today's open. It looks like the Fed will provide no credit to index fund traders today, for the second time this week, see http://www.newyorkfed.org/markets/omo/dmm/temp.cfm?SHOWMORE=TRUE. It's been a rare occasion that they've provided no credit, but this week they've done it twice, and, yesterday's $8 Billion versus the typical $13-14 Billion for a Thursday is more evidence that they want a correction.
The NEM Lead Indicator was a modestly bullish +0.43% vs the XAU yesterday, which indicates that more wave A downside today won't be surprising. The NEM Lead Indicator was a slightly bullish +0.21% vs the XAU on Wednesday, was a very bullish +1.03% vs the XAU on Tuesday, was a very bearish -1.56% versus the XAU on Monday after being a bearish -0.65% versus the XAU on Friday 9-15. The past thirteen weeks and four days the NEM Lead Indicator is a very bearish -12.13% versus the XAU.
A vicious multi week decline, similar to the one that occurred from 5-11-06 until 6-13-06 for HUI/NEM/XAU, began on 9-6 for HUI/XAU and on 9-5 for reliable lead indicator NEM. Wave A of this major downcycle since 9-6 may still be in effect (may last a few more sessions). Wave B up of the major downcycle since 9-6 might last over a week, Wave B in the prior major downcycle from 5-11-06 until 6-13-06 did, then it's time for the final Wave C down and another brutal decline for HUI/XAU, in which Wave A of their Cyclical Bear Market since 5-11-06 bottoms, probably in the 100-110 range for the XAU. 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/
HUI NEM XAU
The NEM Lead Indicator was a modestly bullish +0.43% vs the XAU yesterday, which indicates that more wave A downside today won't be surprising. The NEM Lead Indicator was a slightly bullish +0.21% vs the XAU on Wednesday, was a very bullish +1.03% vs the XAU on Tuesday, was a very bearish -1.56% versus the XAU on Monday after being a bearish -0.65% versus the XAU on Friday 9-15. The past thirteen weeks and four days the NEM Lead Indicator is a very bearish -12.13% versus the XAU.
A vicious multi week decline, similar to the one that occurred from 5-11-06 until 6-13-06 for HUI/NEM/XAU, began on 9-6 for HUI/XAU and on 9-5 for reliable lead indicator NEM. Wave A of this major downcycle since 9-6 may still be in effect (may last a few more sessions). Wave B up of the major downcycle since 9-6 might last over a week, Wave B in the prior major downcycle from 5-11-06 until 6-13-06 did, then it's time for the final Wave C down and another brutal decline for HUI/XAU, in which Wave A of their Cyclical Bear Market since 5-11-06 bottoms, probably in the 100-110 range for the XAU. 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/
HUI NEM XAU
posted by Joe Ferrazzano at
7:24 AM
