BQI Needs To Break It's Cyclical Bear Market Downtrend Line
BQI, a stock I mentioned yesterday, needs to break it's Cyclical Bear Market downtrend line since May 2006, see http://finance.yahoo.com/q/ta?s=BQI&t=2y&l=off&z=l&q=c&p=v&a=m26-12-9,p12,fs,w14&c==. This is the first chart of BQI I've seen that goes back more than 8 months, I guess because it went from the OTC BB to the AMEX.
So, I didn't realize that it needed to establish a Cyclical Bear Market cycle low. It might have bottomed in March, but one has to wait for it to clearly break it's downtrend line since May 2006 (rise to 5+). BQI was a rocket in it's previous Cyclical Bull Market, rising over 2000% in less than a year. It'll probably be a rocket again after it breaks it's Cyclical Bear Market downtrend line since May 2006.
AVNR, which I bought at 4.17 about a week ago (not on Monday that I said yesterday), so, I botched the entry point, but, should still roughly double my money in a very short time if the upside gap at 7.40 gets filled as expected (Wave 3 peaked at 6.75), might have hit a short term Wave 4 cycle low today at 3.17, see http://finance.yahoo.com/q/ta?s=avnr&t=5d&l=off&z=l&q=c&p=&a=m26-12-9%2Cp12%2Cfs%2Cw14&c==.
If one decides to trade rockets obviously paper trade for a while or trade very modest positions at first.
There are times when one should wait for strength after hitting a price target (hit a buy signal), such as if there's a well established downtrend line one should wait for it to clearly be broken, and, there are times to consider trying to catch the bottom (when I Watch and the WMT Lead Indicator are clearly bullish and/or a stock bounces at a well established uptrend line, then look to buy a pullback). I'll be discussing that also.
I'll be using cycle trendlines/channels, Elliott Wave patterns, gaps, the WMT Lead Indicator, I Watch, etc. to time the rockets. If it works the way I think it will it should be a lot of fun. We'll see.
As a long term multi-year investor in any stock, commodity, etc. you want to buy near the primary multi-year Secular Bull Market/very long term upcycle trendline, for example NEM's is at 40ish right now, see chart 8 at http://www.joefrocks.com/GoldStockCharts.html. Therefore, NEM right now would be a great buy in the 40-42 range. Gold's primary multi-year Secular Bull Market/very long term upcycle trendline is at $470ish right now, so, gold would be a great buy in the $470-500 range. When the vast majority of gold writers say it's a great time to buy or are bullish, as they almost always are, it's rarely a good time for long term investors to buy.
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
So, I didn't realize that it needed to establish a Cyclical Bear Market cycle low. It might have bottomed in March, but one has to wait for it to clearly break it's downtrend line since May 2006 (rise to 5+). BQI was a rocket in it's previous Cyclical Bull Market, rising over 2000% in less than a year. It'll probably be a rocket again after it breaks it's Cyclical Bear Market downtrend line since May 2006.
AVNR, which I bought at 4.17 about a week ago (not on Monday that I said yesterday), so, I botched the entry point, but, should still roughly double my money in a very short time if the upside gap at 7.40 gets filled as expected (Wave 3 peaked at 6.75), might have hit a short term Wave 4 cycle low today at 3.17, see http://finance.yahoo.com/q/ta?s=avnr&t=5d&l=off&z=l&q=c&p=&a=m26-12-9%2Cp12%2Cfs%2Cw14&c==.
If one decides to trade rockets obviously paper trade for a while or trade very modest positions at first.
There are times when one should wait for strength after hitting a price target (hit a buy signal), such as if there's a well established downtrend line one should wait for it to clearly be broken, and, there are times to consider trying to catch the bottom (when I Watch and the WMT Lead Indicator are clearly bullish and/or a stock bounces at a well established uptrend line, then look to buy a pullback). I'll be discussing that also.
I'll be using cycle trendlines/channels, Elliott Wave patterns, gaps, the WMT Lead Indicator, I Watch, etc. to time the rockets. If it works the way I think it will it should be a lot of fun. We'll see.
As a long term multi-year investor in any stock, commodity, etc. you want to buy near the primary multi-year Secular Bull Market/very long term upcycle trendline, for example NEM's is at 40ish right now, see chart 8 at http://www.joefrocks.com/GoldStockCharts.html. Therefore, NEM right now would be a great buy in the 40-42 range. Gold's primary multi-year Secular Bull Market/very long term upcycle trendline is at $470ish right now, so, gold would be a great buy in the $470-500 range. When the vast majority of gold writers say it's a great time to buy or are bullish, as they almost always are, it's rarely a good time for long term investors to buy.
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
8:27 AM
