The NEM Lead Indicator Was A Modestly Bearish -0.49% Versus The XAU Today
It looks like NEM will fill it's downside gap at 41.83 from last Friday, and, the XAU may fill it's downside gap at 125.39 from last Friday also, because the NEM Lead Indicator was a modestly bearish -0.49% versus the XAU today. Typically a buy point occurs when the NEM Lead Indicator is clearly bullish (> +0.50%), so, it looks like a Wave 4 short term cycle low may occur early tomorrow. Tomorrow's likely to be a good buying opportunity, but, you have to gauge the cycles for the gold/silver stocks you're trading.
The Yahoo 5 day chart is highly useful for gauging short term cycles, the Wave 4 short term downcycle is likely to have an Elliot Wave ABC down up down pattern. For example HUI hit a Wave 3 short term cycle high on Monday then did a Wave A down to 297.59 yesterday, hit a Wave B cycle high at 305.03 today, and, is probably still in Wave C down at today's close, since the cycle low today at 297.55 is only slightly below Wave A's cycle low yesterday at 297.59, and, Wave C cycle lows are usually well below Wave A's. See HUI's 5 day chart at http://finance.yahoo.com/q/ta?s=%5EHUI&t=5d&l=off&z=l&q=c&p=&a=m26-12-9,p12,fs,w14&c==.
HUI/NEM/XAU are all in a Wave 4 short term downcycle for the monthly upcycle since 10-4-06, that may bottom tomorrow at 41.50-42 for NEM, at 125-126ish for the XAU and at 295-297ish for HUI. HUI did a Wave A down to 297.59 yesterday after the Wave 3 short term upcycle peaked on Monday. Watch the downside gaps from last Friday at 41.83 for NEM and at 125.39 for the XAU. The good buying opportunity/Wave 4 short term cycle low is likely to occur tomorrow.
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 (probably ended at 39.84 on Wednesday 10-4). NEM's Secular Bull Market/very long term upcycle trendline is currently at 40ish (see second 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 Yahoo 5 day chart is highly useful for gauging short term cycles, the Wave 4 short term downcycle is likely to have an Elliot Wave ABC down up down pattern. For example HUI hit a Wave 3 short term cycle high on Monday then did a Wave A down to 297.59 yesterday, hit a Wave B cycle high at 305.03 today, and, is probably still in Wave C down at today's close, since the cycle low today at 297.55 is only slightly below Wave A's cycle low yesterday at 297.59, and, Wave C cycle lows are usually well below Wave A's. See HUI's 5 day chart at http://finance.yahoo.com/q/ta?s=%5EHUI&t=5d&l=off&z=l&q=c&p=&a=m26-12-9,p12,fs,w14&c==.
HUI/NEM/XAU are all in a Wave 4 short term downcycle for the monthly upcycle since 10-4-06, that may bottom tomorrow at 41.50-42 for NEM, at 125-126ish for the XAU and at 295-297ish for HUI. HUI did a Wave A down to 297.59 yesterday after the Wave 3 short term upcycle peaked on Monday. Watch the downside gaps from last Friday at 41.83 for NEM and at 125.39 for the XAU. The good buying opportunity/Wave 4 short term cycle low is likely to occur tomorrow.
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 (probably ended at 39.84 on Wednesday 10-4). NEM's Secular Bull Market/very long term upcycle trendline is currently at 40ish (see second 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
1:13 PM
