NEM And The XAU Filled Yesterday's Upside Gaps
NEM and the XAU filled yesterday's upside gaps at 46.26 and 143.12, with a big assist from a large $11 Billion Repo from the Fed today, that's led to a rebound in the S & P 500 (SPX) and therefore program buying that boosted HUI/NEM/XAU, see http://www.newyorkfed.org/markets/omo/dmm/temp.cfm?SHOWMORE=TRUE. HUI is in a very short term Wave B (XAU also) since putting in a Wave B cycle high on 2-15 (XAU on 2-14), see 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==. Watch upside gaps at 46.51 and 144.64 now.
The expected early weakness occurred, but NEM didn't fill 45.34 yet, bottoming at 45.50.
After seeing what happens today I'll have to reassess what I said in the first post, see http://tradethecycles.blogspot.com/2007/02/reliable-lead-indicator-nem-failed-to.html. The bottom line is that there should be a big drop the next few weeks in Wave A of the major Wave C that began last week for HUI (2-15)/XAU (2-14). Getting out and back in isn't for most people, because you may miss a big move down, and, today shows how difficult very short term timing can be due to Fed Credit. Stay tuned.
HUI/XAU's Wave 2 Cyclical Bear Market began 5-11-06, see charts 7 and 9 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 5-6 yearish Wave 3 Cyclical Bull Market since 10-4-06, see chart 8 at http://www.joefrocks.com/GoldStockCharts.html. ....... http://www.JoeFRocks.com/ .
HUI NEM XAU
The expected early weakness occurred, but NEM didn't fill 45.34 yet, bottoming at 45.50.
After seeing what happens today I'll have to reassess what I said in the first post, see http://tradethecycles.blogspot.com/2007/02/reliable-lead-indicator-nem-failed-to.html. The bottom line is that there should be a big drop the next few weeks in Wave A of the major Wave C that began last week for HUI (2-15)/XAU (2-14). Getting out and back in isn't for most people, because you may miss a big move down, and, today shows how difficult very short term timing can be due to Fed Credit. Stay tuned.
HUI/XAU's Wave 2 Cyclical Bear Market began 5-11-06, see charts 7 and 9 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 5-6 yearish Wave 3 Cyclical Bull Market since 10-4-06, see chart 8 at http://www.joefrocks.com/GoldStockCharts.html. ....... http://www.JoeFRocks.com/ .
HUI NEM XAU
Labels: Gold, Gold Stocks, HUI, NEM, Silver, Silver Stocks, SPX, XAU
posted by Joe Ferrazzano at
9:16 AM
