The HUI/XAU Wave 2 Cyclical Bear Market Since Mid March Is Probably Approaching An End!
Here's some great news amidst the incredible gloom for gold bugs. If the AMEX Gold Bugs Index HUI (http://stockcharts.com/charts/gallery.html?%24hui) falls to it's primary multi year (Since November 2000, see chart 8 at http://www.joefrocks.com/GoldStockCharts.html) Secular Bull Market uptrend line at 220ish in the next few days/near future, then, the Wave 2 Cyclical Bear Market since 3-17-08 will probably conclude/end.
HUI's cycle low today 10-6 was 234.35, see http://finance.yahoo.com/q/ta?s=%5Ehui&t=5d&l=on&z=l&q=c&p=&a=p12%2Cfs%2Cw14&c, so, HUI could obviously hit 220ish in the very near future. Also, 234.35 is close enough to 220 that it can't be ruled out as a Wave 2 Cyclical Bear Market cycle low. It probably isn't, but, it can't be ruled out. A major buy signal, as discussed next, must occur.
Please keep in mind that GDX/HUI/XAU have to hit a 5% follow through (after breaking the downtrend line since 3-17-08) major buy signal before the Trade the Cycles system indicates that GDX/HUI/XAU very likely put in a Wave 2 Cyclical Bear Market cycle low (if HUI falls to 220ish, though today 10-6's cycle low at 234.35 is close enough) and entered a multi year (probably 5 to 7 years) Wave 3 Cyclical Bull Market.
"My" downside target (where the primary multi year trendline is, basic stuff) for gold is $500 to $550 (see chart 3 at http://www.joefrocks.com/GoldStockCharts.html), which obviously means that gold probably has a long way to go on the downside (lagging GDX/HUI/XAU).
.......http://www.JoeFRocks.com/
NEM XAU HUI
HUI's cycle low today 10-6 was 234.35, see http://finance.yahoo.com/q/ta?s=%5Ehui&t=5d&l=on&z=l&q=c&p=&a=p12%2Cfs%2Cw14&c, so, HUI could obviously hit 220ish in the very near future. Also, 234.35 is close enough to 220 that it can't be ruled out as a Wave 2 Cyclical Bear Market cycle low. It probably isn't, but, it can't be ruled out. A major buy signal, as discussed next, must occur.
Please keep in mind that GDX/HUI/XAU have to hit a 5% follow through (after breaking the downtrend line since 3-17-08) major buy signal before the Trade the Cycles system indicates that GDX/HUI/XAU very likely put in a Wave 2 Cyclical Bear Market cycle low (if HUI falls to 220ish, though today 10-6's cycle low at 234.35 is close enough) and entered a multi year (probably 5 to 7 years) Wave 3 Cyclical Bull Market.
"My" downside target (where the primary multi year trendline is, basic stuff) for gold is $500 to $550 (see chart 3 at http://www.joefrocks.com/GoldStockCharts.html), which obviously means that gold probably has a long way to go on the downside (lagging GDX/HUI/XAU).
.......http://www.JoeFRocks.com/
NEM XAU HUI
Labels: Gold, Gold Stocks, HUI, NEM, Silver, Silver Stocks, XAU
posted by Joe Ferrazzano at
12:19 PM
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