HUI/NEM/XAU Tested Yesterday's Likely Monthly Cycle Highs Today
HUI/NEM/XAU tested yesterday's likely monthly cycle highs today, putting in cycle highs slightly below yesterday's (see http://finance.yahoo.com/q/ta?s=%5EHUI&t=5d&l=off&z=l&q=b&p=&a=m26-12-9,p12,fs,w14&c=), which is probably the flat part of the monthly downcycle.
Yesterday's very bullish NEM Lead Indicator (+1.17% versus the XAU) correctly portended a significant rebound today, and, both downcycles and upcycles almost always begin relatively flat. Today's NEM Lead Indicator is slightly bearish at -0.20% versus the XAU, see http://finance.yahoo.com/q/ta?s=%5EXAU&t=5d&l=off&z=m&q=l&p=&a=&c=%5Ehui,nem, but, it became clearly bearish in the second half of the session, which portends weakness early tomorrow. So, NEM may fill (doing an Elliot Wave ABC down up down pattern) yesterday's downside gap at 45.27 tomorrow, see http://finance.yahoo.com/q/ta?s=nem&t=5d&l=off&z=l&q=c&p=&a=m26-12-9%2Cp12%2Cfs%2Cw14&c. NEM's large gap up at yesterday's open to 46.25 from 45.27 probably isn't a major breakout with big implications for HUI/XAU as discussed yesterday.
HUI/NEM/XAU are now clearly in a short term downcycle (since early yesterday's likely monthly cycle highs) that's probably a 2-4 session Wave A of a one to two week monthly downcycle. HUI/NEM/XAU are likely to fall in excess of 5% in Wave A as discussed previously.
The monthly cycle since 10-4-06 is probably the start of the 3-6 monthish Wave B up of HUI/XAU's Wave 2 Cyclical Bear Market since 5-11-06, see the first chart 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
Yesterday's very bullish NEM Lead Indicator (+1.17% versus the XAU) correctly portended a significant rebound today, and, both downcycles and upcycles almost always begin relatively flat. Today's NEM Lead Indicator is slightly bearish at -0.20% versus the XAU, see http://finance.yahoo.com/q/ta?s=%5EXAU&t=5d&l=off&z=m&q=l&p=&a=&c=%5Ehui,nem, but, it became clearly bearish in the second half of the session, which portends weakness early tomorrow. So, NEM may fill (doing an Elliot Wave ABC down up down pattern) yesterday's downside gap at 45.27 tomorrow, see http://finance.yahoo.com/q/ta?s=nem&t=5d&l=off&z=l&q=c&p=&a=m26-12-9%2Cp12%2Cfs%2Cw14&c. NEM's large gap up at yesterday's open to 46.25 from 45.27 probably isn't a major breakout with big implications for HUI/XAU as discussed yesterday.
HUI/NEM/XAU are now clearly in a short term downcycle (since early yesterday's likely monthly cycle highs) that's probably a 2-4 session Wave A of a one to two week monthly downcycle. HUI/NEM/XAU are likely to fall in excess of 5% in Wave A as discussed previously.
The monthly cycle since 10-4-06 is probably the start of the 3-6 monthish Wave B up of HUI/XAU's Wave 2 Cyclical Bear Market since 5-11-06, see the first chart 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
1:14 PM
