Very Important "Major Red Flag/Warning" From The One Year NEM Lead Indicator
Since HUI/NEM/XAU are near an important monthly cycle high for the monthly cycle that began on 10-4-06, I need to point out something that's very important. HUI/XAU might be about to experience another vicious decline, that will probably be the end of their Wave 2 Cyclical Bear Market since 5-11-06 (reliable lead indicator NEM's ended on 10-4-06). The very bearish one year NEM Lead Indicator, see http://finance.yahoo.com/q/ta?s=%5EXAU&t=1y&l=off&z=m&q=l&p=&a=&c=%5Ehui,nem, suggests that a vicious decline is about to occur for HUI/XAU. Note the wide gap/NEM underperformance in May and early September just before vicious declines occurred. The gap now is very wide which suggests that another vicious decline is about to occur for HUI/XAU.
I assumed that June 13's cycle lows for HUI/XAU were Wave A OF Wave A of the Wave 2 Cyclical Bear Market since 5-11-06, because, I assumed that the Wave 2 Cyclical Bear Market would last about 18 months. Obviously June 13 might have been the Wave A cycle low and the early September cycle high might have been the Wave B cycle high, which would mean that HUI/XAU are now possibly in Wave C, and, if so, Wave C is doing an Elliot Wave ABC down up down pattern, with Wave A bottoming on October 4 and Wave B peaking probably today, which would mean that HUI/XAU might be on the cusp of another vicious decline (Wave C of Wave C). This jives with the very bearish one year NEM Lead Indicator, and, you know how well it works if you've followed it for a while.
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
I assumed that June 13's cycle lows for HUI/XAU were Wave A OF Wave A of the Wave 2 Cyclical Bear Market since 5-11-06, because, I assumed that the Wave 2 Cyclical Bear Market would last about 18 months. Obviously June 13 might have been the Wave A cycle low and the early September cycle high might have been the Wave B cycle high, which would mean that HUI/XAU are now possibly in Wave C, and, if so, Wave C is doing an Elliot Wave ABC down up down pattern, with Wave A bottoming on October 4 and Wave B peaking probably today, which would mean that HUI/XAU might be on the cusp of another vicious decline (Wave C of Wave C). This jives with the very bearish one year NEM Lead Indicator, and, you know how well it works if you've followed it for a while.
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
9:52 AM
