The NEM Lead Indicator Is A Very Bullish +1.30% Versus The XAU Right Now
The NEM Lead Indicator is a very bullish +1.30% versus the XAU right now, which suggests that NEM won't fill it's downside gaps at 42.21 and 41.83 this week, but, NEM may be doing an intraday Elliot Wave ABC down up down pattern after hitting an early session cycle high (so far) at 43.23, and, appears to be in Wave B up right now, so waiting for Wave C down to bottom (if 43.23 isn't exceeded in the current intraday upcycle, which would mean that an ABC pattern isn't occurring right now) makes sense.
The NEM Lead Indicator suggests that one should be looking to buy today, which doesn't necessarily mean that you SHOULD buy today, just that you should be looking to buy if that's your intention. You need to gauge the cycles of whatever gold/silver stocks you're trading, using cycle channels/trendlines, Elliot Wave, gaps, technical indicators, volume, etc.
The XAU and HUI have been in a Wave 2 Cyclical Bear Market since 5-11-06 (but began the bullish 3-6 month Wave B up on 10-4-06) and reliable lead indicator NEM was (until 10-4-06) in a Wave 2 Cyclical Bear Market since 1-31-06 (ended at 39.84 on Wednesday 10-4). NEM's Secular Bull Market/very long term upcycle trendline is currently at 40ish (see third chart at http://www.joefrocks.com/GoldStockCharts.html). 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 suggests that one should be looking to buy today, which doesn't necessarily mean that you SHOULD buy today, just that you should be looking to buy if that's your intention. You need to gauge the cycles of whatever gold/silver stocks you're trading, using cycle channels/trendlines, Elliot Wave, gaps, technical indicators, volume, etc.
The XAU and HUI have been in a Wave 2 Cyclical Bear Market since 5-11-06 (but began the bullish 3-6 month Wave B up on 10-4-06) and reliable lead indicator NEM was (until 10-4-06) in a Wave 2 Cyclical Bear Market since 1-31-06 (ended at 39.84 on Wednesday 10-4). NEM's Secular Bull Market/very long term upcycle trendline is currently at 40ish (see third chart at http://www.joefrocks.com/GoldStockCharts.html). 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
8:59 AM
