AMEX Gold BUGS Index Update

Sorry for the delay in posting this article...the amount of time for deducing the Elliott Wave count has occupied an inordinate amount of time. The present behaviour of the HUI leaves only the presented Elliott Wave count as being plausible at the moment. There are many undercurrents in the market at present and often how they blend to create sudden vortexes or expansions in strength of flow are impossible to predict. If the HUI were to take out 450 in the coming correction, then I would have to revise my thinking...however, analysis on gold, and the broad stock market indices support the presented ideas of this article (at least for the moment). With today's analysis, keep in mind that risk capital should have extremely tight stops to preserve money. As mentioned for the past 5 months or so, any move above 505 for two consecutive closes places termination of the next upward move somewhere between 900 to 1000. One important thing to consider is that stock dividend yields are outperforming bonds for the first time in awhile...generally under such circumstances, smart money rotates into stocks, which provides a hand to the market. Under such conditions, expect the stock market to exhibit strength. (more)