There's Good News And A Piece Of Minor Bad News

The good news is that it's a slam dunk that bullish breakaway gaps occurred last Friday for NEM/XAU (HUI has fewer gaps, so I usually don't discuss HUI's) as previously thought, at 41.83 for NEM and at 125.39 for the XAU. The minor bad news is that it looks like the XAU may fill it's upside gap (created at today's open) at 130.25 early tomorrow, see http://finance.yahoo.com/q/ta?s=%5Exau&t=5d&l=off&z=l&q=c&p=&a=m26-12-9%2Cp12%2Cfs%2Cw14&c=, in which case a Wave 3 short term cycle high didn't occur late yesterday, it'll probably occur tomorrow, and, that cycle high will probably be the final Wave 3 short term cycle high. The NEM Lead Indicator at a slightly bearish -0.15% versus the XAU today suggests that the XAU will probably fill that upside gap early tomorrow. So, an Elliot Wave 4 ABC down up down short term downcycle will probably have to occur for a session or two after likely early strength and a likely Wave 3 short term cycle high tomorrow.

But, there still should be a third/Wave 5 short term upcycle and possibly another short term upcycle as the monthly upcycle (since 10-4-06) rolls over/flattens out/peaks. As I said previously, there are usually three good short term upcycles in a monthly upcycle for HUI/NEM/XAU from my experience, and, often a fourth short term upcycle occurs as the monthly upcycle rolls over/flattens out/peaks.

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