The NEM Lead Indicator Is A Bearish -0.76% Vs The XAU Right Now
The NEM Lead Indicator is a bearish -0.76% vs the XAU right now, was a bearish -0.70% vs the XAU yesterday, and, was a bearish -0.57% vs the XAU on Friday, which indicates that more wave A downside this week won't be surprising, or, at least a test of the Wave A cycle lows that occurred yesterday is likely.
NEM filled it's upside gap at 43.78 today, so, maybe NEM bottomed yesterday at 42.20, which is potentially the end (or nearly so) of reliable lead indicator NEM's Wave 2 Cyclical Bear Market since 1-31-06, since NEM's Secular Bull Market/very long term upcycle trendline is currently at 41ish, see first chart at http://www.joefrocks.com/GoldStockCharts.html.
The past fourteen weeks and one day the NEM Lead Indicator is a very bearish -13.40% versus the XAU. The XAU's Secular Bull Market/very long term upcycle trendline is currently at 85ish (see second chart at http://www.joefrocks.com/GoldStockCharts.html), so, please keep that in mind.
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
NEM filled it's upside gap at 43.78 today, so, maybe NEM bottomed yesterday at 42.20, which is potentially the end (or nearly so) of reliable lead indicator NEM's Wave 2 Cyclical Bear Market since 1-31-06, since NEM's Secular Bull Market/very long term upcycle trendline is currently at 41ish, see first chart at http://www.joefrocks.com/GoldStockCharts.html.
The past fourteen weeks and one day the NEM Lead Indicator is a very bearish -13.40% versus the XAU. The XAU's Secular Bull Market/very long term upcycle trendline is currently at 85ish (see second chart at http://www.joefrocks.com/GoldStockCharts.html), so, please keep that in mind.
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
8:34 AM
