................HUI/NEM/XAU Peaking Action
Today's big 4%ish spike moves by HUI/NEM/XAU are what tend to occur at important cycle highs, and, was probably fueled in large part by short covering. NEM's high volume of 10.4 million shares today is another sign that today was peaking/spiking action.
It looks like NEM may take out it's potential monthly cycle high at 46.89 that occurred on 11-1 tomorrow, since it closed at 46.85 today. If the 3-6 weekish vicious decline scenario does unfold as the
very bearish one year NEM Lead Indicator indicates is likely, see http://finance.yahoo.com/q/ta?s=%5EXAU&t=1y&l=off&z=m&q=l&p=&a=&c=%5Ehui,nem, then a lot of gold/silver bugs will be blindsided in a big way. Even if the vicious decline scenario doesn't unfold short term there's likely to be an 8-15% two weekish monthly downcycle.
The NEM Lead Indicator was a bearish -0.47% versus the XAU today, was -0.15% on 11-8, and, was -0.61% on 11-7.
HUI/XAU have rallied toward their Wave 2 Cyclical Bear Market (began 5-11-06) downtrend lines, and, appear to be about to enter Wave C of Wave C (Wave C is probably doing an Elliot Wave ABC down up down pattern), so, since reliable lead indicator NEM probably completed it's Wave 2 Cyclical Bear Market (began 1-31-06) on 10-4-06 at 39.84, it makes sense that HUI/XAU are about to experience a vicious decline, that should mark the end of their Wave 2 Cyclical Bear Market, because they've rallied toward their Wave 2 Cyclical Bear Market downtrend lines. The other scenario is the 2 weekish monthly downcycle scenario where HUI/XAU drop 8-15%. If the vicious decline scenario occurs short term there should soon be some big down days of 3-5%+. It should make itself obvious.
HUI/XAU's Wave 2 Cyclical Bear Market began 5-11-06, see charts 3 and 5 at http://www.joefrocks.com/GoldStockCharts.html. NEM's Wave 2 Cyclical Bear Market that began on 1-31-06 ended on 10-4-06 at 39.84, so, reliable lead indicator NEM is probably in a 5 yearish Wave 3 Cyclical Bull Market since 10-4-06, see chart 4 at http://www.joefrocks.com/GoldStockCharts.html. ....... http://www.JoeFRocks.com/ .
HUI NEM XAU
It looks like NEM may take out it's potential monthly cycle high at 46.89 that occurred on 11-1 tomorrow, since it closed at 46.85 today. If the 3-6 weekish vicious decline scenario does unfold as the
very bearish one year NEM Lead Indicator indicates is likely, see http://finance.yahoo.com/q/ta?s=%5EXAU&t=1y&l=off&z=m&q=l&p=&a=&c=%5Ehui,nem, then a lot of gold/silver bugs will be blindsided in a big way. Even if the vicious decline scenario doesn't unfold short term there's likely to be an 8-15% two weekish monthly downcycle.
The NEM Lead Indicator was a bearish -0.47% versus the XAU today, was -0.15% on 11-8, and, was -0.61% on 11-7.
HUI/XAU have rallied toward their Wave 2 Cyclical Bear Market (began 5-11-06) downtrend lines, and, appear to be about to enter Wave C of Wave C (Wave C is probably doing an Elliot Wave ABC down up down pattern), so, since reliable lead indicator NEM probably completed it's Wave 2 Cyclical Bear Market (began 1-31-06) on 10-4-06 at 39.84, it makes sense that HUI/XAU are about to experience a vicious decline, that should mark the end of their Wave 2 Cyclical Bear Market, because they've rallied toward their Wave 2 Cyclical Bear Market downtrend lines. The other scenario is the 2 weekish monthly downcycle scenario where HUI/XAU drop 8-15%. If the vicious decline scenario occurs short term there should soon be some big down days of 3-5%+. It should make itself obvious.
HUI/XAU's Wave 2 Cyclical Bear Market began 5-11-06, see charts 3 and 5 at http://www.joefrocks.com/GoldStockCharts.html. NEM's Wave 2 Cyclical Bear Market that began on 1-31-06 ended on 10-4-06 at 39.84, so, reliable lead indicator NEM is probably in a 5 yearish Wave 3 Cyclical Bull Market since 10-4-06, see chart 4 at http://www.joefrocks.com/GoldStockCharts.html. ....... http://www.JoeFRocks.com/ .
HUI NEM XAU
posted by Joe Ferrazzano at
1:15 PM
