Said it before, I'll say it again, this looks like the chart to use if you want a clean EW count for gold stocks:
stockcharts.com[w,a]wallyyay[pf][vc60]&pref=G
5 waves down, now it corrects to ... I'm guessing 2.55, which is 16% retrace and places it about the middle of the wedge that developed during the 4 down. Assuming gold holds above $350, that gives 137 HUI as a worst-case. I'd be happy with a 50% retrace in HUI to 147 and POG = 375 to get that 2.55 ratio in early June, which as you know is the time fib target for 16% of the bull move. In fact, all that would make perfect sense if we are to see "stars aligning" for the LT gold bull.
Got to be patient and look at this as the glass half-full. Easier to do if you have a cash pile.
I nibbled some MDW at the lows today, but went away empty-handed otherwise. Looks like a good thing, as the odds of hitting the 147 are looking mighty good.
Regards,
crusty |
