• 2 hours $15,000 For Your Crypto’s Ticket To Visibility
  • 1 day The Next Fashion Frontier
  • 2 days What Is Africa’s Role In The New Silk Road?
  • 3 days Trump Was Right About The Dollar
  • 3 days Is Silver Gearing Up For A Rally?
  • 3 days World’s Largest Hedge Fund Turns Bullish On Gold
  • 3 days It’s Time To Spend More On Clean Energy R&D
  • 4 days Contrarian Investors Are Beating The Stock Market
  • 4 days Bulgaria’s Revenue Agency Falls Victim To Biggest Cyber Heist In History
  • 4 days Amazon Faces European Union Anti-Trust Probe
  • 4 days Commodities Are Having A Stellar Year
  • 5 days Bezos’ Next Big Project Could Be Worth $100 Billion Per Year
  • 5 days 3,600 Years Later, Climate Change Turns Mammoths Into $40M Market
  • 5 days Tesla, Apple Claim China Is Stealing Intellectual Property
  • 5 days EV Giants Duke It Out For Battery Dominance
  • 6 days Tech Billionaire Takes Aim At Google
  • 6 days Chinese Police Bust Largest Ever Illicit Crypto Mining Operation
  • 6 days Expect A Pullback Before Gold's Next Major Rally
  • 6 days Why Interest On Gold Matters
  • 7 days Ten Extravagant Food Items For The Wealthy Only
Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

  1. Home
  2. Markets
  3. Other

The HUI Amex Gold Bugs Index Should Do Well in 2007

We believe that the HUI Amex Gold Bugs Index is building a base from which it will rise sharply for most of 2007. There is a Symmetrical Triangle pattern completing, which suggests prices should rises sharply once it concludes. This pattern is a consolidation pattern, a continuation pattern, meaning the direction of prices that preceded it will be the direction of prices that follows it. The chart below shows that the direction of prices was up before this pattern emerged, thus the direction of prices will rise afterwards.

Prices have been in a long-term rising trend-channel since 2000, and should continue further to the upside. The Elliott Wave labeling confirms this thesis, as the HUI is completing an intermediate degree wave 4 symmetrical triangle inside a Primary degree wave (3). Wave fives tend to extend in precious metals, so Intermediate degree wave 5 could be a nice ride.

Triangles are five sets of three waves each. Minor degree waves a through d are complete and wave e down is finishing. Once e bottoms, perhaps around 280 to 300ish, Intermediate wave 4's triangle will be complete and 5 up will start. We are not far from that launch point.

The HUI Amex Gold Bugs Index fell 2.97 points Friday to close at 314.12. Volume was huge at 175 percent of its 10 day average. Downside volume led at 79 percent, with declining issues also at 79 percent. Our key trend-finder indicators remain on a "sell" signal. The HUI Purchasing Power Indicator fell to 162.60, a new low for the decline, remaining on a "sell" from December 21st. Since this generated a "sell" signal, the HUI fell 18.77 points, or 5.73 percent over two weeks. The HUI 30 day Stochastic Fast fell to 5.26, below the Slow at 30.41, remaining on a "sell" from December 15th. Since this indicator generated a "sell" on December 15th, the HUI has fell 30.57 points, or 9.01 percent. The Stochastic measures breadth momentum while the Purchasing Power Indicator measures demand and supply momentum.

The "sell" signals in our key trend-finder indicators for the HUI confirm that wave d of a Symmetrical Triangle topped, and the current decline is wave e down, which should complete Intermediate degree wave 4 of an eventual five-wave primary degree wave (3) up. Once that pattern completes, then the HUI should see a huge rally into Intermediate wave 5 of primary (3). That should likely start in early 2007, and last most of the year.

For a Free 30 day Trial Subscription, go to www.technicalindicatorindex.com and click on the button at the upper right of the Home Page.

"He counts the number of the stars;
He gives names to all of them.
Great is our Lord, and abundant in strength.
His understanding is infinite.

Psalm 147:4, 5

We wish you a healthy and prosperous New Year!

If you are a trader, we offer market timing signals. If you are a conservative long-term investor, we manage our Conservative Balanced Investment Portfolio, and publish our transactions on a regular basis.


Back to homepage

Leave a comment

Leave a comment