7 replies to this topic

[SilentOne]

Hello to any wavers, You are going to enjoy this. EWI has sent out a gold heads up which is pasted below. Don't worry, it is a public message. Now the question is, are they going to get faked out big time come next week?? We'll see. If there is a subscriber out there that would like to confirm their current count you are welcome to post. I already know from their language, they see a 3-3 down coming next. I don't, but it will provide an interesting dynamic to the precious metal markets next week. cheers, john Here's their message: ++++++++++++++++++++++++++++++++++++++++++++++++++++ A Wonder to Behold" Upcoming in Gold? 5/6/2005 2:51:30 PM Minutes after COMEX gold trading commenced Friday, prices for the yellow metal plunged more than six dollars per troy ounce (1.3%). As usual, there's no lack of explanations for "why" the move happened. Take your pick of stories: The dollar's rise either "undercut futures prices for gold and the rest of the metals sector," OR precious metals opened lower "on jobs data," OR the market "threw off some of its recent sluggishness as Japan's string of 'Golden Week' holidays draw to a close." These explanations for what's already happened may or may not be valid, but every one of them fails to explain the significance of the move itself. What's most important is what today's move explains about the larger trend. In contrast, Specialty Services subscribers knew what such a plunge would mean the night before it actually happened. Thursday evening, Specialty Services Metals Editor Mike Drakulich alerted subscribers to the critical juncture in gold. Then he cited a key price level that would turn the tables in favor of a very exciting Elliott wave opportunity. Friday Morning, gold prices broke through that key level. In short, the Elliott wave pattern that's emerging right now strongly suggests we're about to see a move in gold that will be hard to ignore. Here's what Bob Prechter writes about the pattern we see as a strong possibility for gold: These moves "are wonders to behold. They are strong and broad, and the trend at this point is unmistakable…. Such points invariably produce breakouts, 'continuation' gaps, volume expansions, exceptional breadth … and runaway price movement, creating large hourly, daily, weekly, monthly, or yearly gains in the market, depending on the degree of the wave." If you know something about the Wave Principle, you know we're talking about a third-of-a-third wave, "the most volatile point of strength in any wave sequence." As for the "degree of the wave," you'll have to consult the forecast itself. I can tell you that if we're right, the coming move will dwarf the size and strength today's drop -- and soon. ++++++++++++++++++++++++++++++++++++++++++++++++++

[SilentOne]

I should add, despite Friday's dump in the precious metals, the action in the miners was very bullish. They did not drop nearly as bad as can be expected. Where do we go from here?? Hard to say, but I think the large HUI triangle is still in play. I will post a couple of charts to show how last week's low may be it for "C" down of the triangle in question. If not, the downside risk is not great if a triangle is in play. And if the triangle count fails, well, it could be very tough for PM investors (me included) from here. But I have faith. I have not really loaded up yet the way I want to (My target is 7 figures in precious metals), but that day will come. cheers, john

[SilentOne]

And BTW - more down next week for gold, the question being how much! cheers, john

[TomD]

Yeagh the last time he sent out one of his 3 of 3 down memo the markets bounce off their March lows Like McHugh.....a contrary indicator

[catrader]

Maybe EWI and I see the same thing. I posted on the board that I was going to sell my gold mutual fund on Monday. Now I am not sure. I probably will still sell it if I see an uptick on Monday.

[Chilidawgz]

The Prechterites are a wondeful contrary indicator...I hope it works again as I have a position in gold shares. EW, "Oops that pattern didn't work, time for a new wave interpretation. There we are. Now then, last weeks 3rd choice of moves we outlined has now led to a more concise pattern and this is what is going to happen next unless pattern 2 or 3 three unfold"

[Chilidawgz]

PS: If gold does head south, first support I am looking for is 420-422 after that IF it is a rout, it could drop to 410. We shall see. Will be interesting to see how shares act, last week they were stronger than gold price. Will use money management and sell if shares break and pick them up cheaper for the next rise.

[catrader]

I just placed my order to sell my gold fund at market close. If I have to buy it higher, so be it.