Very Important Big Picture Trade The Cycles Charts
I've done annotated very long term Trade the Cycles charts for NEM/XAU that provide a great idea as to what's going on now, and, why HUI/XAU still have a ways to go to reach their Secular Bull Market/very long term upcycle trendlines. See the top two Trade the Cycles charts: http://www.joefrocks.com/GoldStockCharts.html.
NEM's Wave 2 Cyclical Bear Market may end up being only about 9 months if NEM hits 41ish in the next few weeks (it's Secular Bull Market trendline), which would make sense since NEM, being a reliable lead indicator, should hit a Wave 2 cycle low well ahead of HUI/XAU. The target range for the XAU's 18 monthish Wave 2 Cyclical Bear Market cycle low is 95-100.
The XAU's Secular Bull Market/very long term upcycle trendline is currently at 85ish versus the XAU's close at 125.81 on 9-22-06.
The reason why most "Elliot Wavers" fail is because they rarely understand cycles, hence they tend to get the Elliot Wave count wrong because they start at the wrong time. Any stocks that have completed an 18 monthish Cyclical Bear Market in the past year or two are trading/investing candidates, then you do your due diligence. CDE for example completed a 16 monthish Cyclical Bear Market in mid 2005 if I remember correctly. ....... http://www.JoeFRocks.com/
HUI NEM XAU
NEM's Wave 2 Cyclical Bear Market may end up being only about 9 months if NEM hits 41ish in the next few weeks (it's Secular Bull Market trendline), which would make sense since NEM, being a reliable lead indicator, should hit a Wave 2 cycle low well ahead of HUI/XAU. The target range for the XAU's 18 monthish Wave 2 Cyclical Bear Market cycle low is 95-100.
The XAU's Secular Bull Market/very long term upcycle trendline is currently at 85ish versus the XAU's close at 125.81 on 9-22-06.
The reason why most "Elliot Wavers" fail is because they rarely understand cycles, hence they tend to get the Elliot Wave count wrong because they start at the wrong time. Any stocks that have completed an 18 monthish Cyclical Bear Market in the past year or two are trading/investing candidates, then you do your due diligence. CDE for example completed a 16 monthish Cyclical Bear Market in mid 2005 if I remember correctly. ....... http://www.JoeFRocks.com/
HUI NEM XAU
posted by Joe Ferrazzano at
1:37 PM
