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Gold/Mining/Energy : Alta Gold -- Ignore unavailable to you. Want to Upgrade?

To: Bruce McGaughey who wrote (611)	4/29/1998 12:02:00 AM
From: ahhaha	Read Replies (2) \| Respond to of 749

Differently. The major bottom occurred Mar 23. Not in January. The rise until Apr 6, a date which coincides with the stock market internal top, I count as 5 count EW minor wave short covering. The selling until Apr 20 was a classic six count compressed EW consolidation. Marginal supply could not get price concession. The move up and pullback sequence since then is the most bullish chart structure available. Breakout and pullback to the tight uptrend. We are in full upside gear. The bottom in January is typical for the third count power move completion. The fourth count is the trend breaker and often means state completion is near. Then the fifth count "sympathy" move or bottom which, in this case, didn't go to a new low. Feb 27 can also be interpreted as the bottom. That would mean that the jump up is the fifth count exhaustion and would imply we need more downside probing. I favor the former interpretation because the "weather" is right. By the way I know Prechter is big on this a-b-c stuff, but I have always found the fifth count. It is often buried and subtle to find but I feel that it is important to find it. In this I have gone beyond Prechter or Elliot, but others have done so too. In this case you don't jump on gold right now because the ambiguity of interpretation available, but you do watch closely. To a certain extent the DOW-gold anti-correlation is in gear and the DOW looks like it's in a full blown downside blast. There isn't the slightest bit of bearishness since the move started last Thursday. During a translation no one says a word. They just watch. This is the psychological tip off to get short. After a 1000 points downside you'll start hearing them. Gold rises because of knee jerk thinking, but there are fundamental reasons supporting the move too. The WSJ raised interest rates but the FED didn't. In fact, they have the pumps in high gear. After all that jawboning they see that they have to let the DOW down gradually by providing reserves at the margin while the rumor mills and whisper circuits generate fear and lower prices. Tinkering. Fine-tuning. Experts that know all about things and what should be. They're engineering psychology but they can deny it by claiming this was an add period. The window is open for gold, so you have to watch for any intraday upside action.