Hui 2000-2019 Review

After a small bullish move, most analysts will give you a continuation of the trend usually when the trend can reverse and head south.  It’s the top trend line that has to be broken by a wide margin and that has not happened yet.

Last week the HUI and gold stocks started to back off right at the trend line which keeps me looking for the bearish wave counts which may take the rest of the year to find out. Hui has been in a bullish phase since September 2018  and it would have to take a complete retracement taking out the 131 price level.  I have a peak in February 2019 (180) as the secondary high is starting to look like a completed wave 2.

The Gold/Hui ratio isn’t all that bad at 7.6:1 but that doesn’t mean it can’t go back to a 10:1 ratio all the same.

 

I added the Barrons Gold Miner Index this time, as it has more history than most all gold related indices or ETFs out today. For a “Choppiest” pattern rating, I would give it an 8-9 rating out of 10.  It wasn’t until I switched over to diagonal wave counting that this pattern made any sense at all.

All commodities have diagonal wave structures as their core pattern which has been going on since the  Little Ice Age, which I use as my Submillennium Elliott Wave 2 bottom.  Elliott wave counting is not what you think we are seeing but its all about how well we understand the idealized wave count that is most important. Looking for that perfect impulse like they show in the books is futile at best and you will never find them. There are two types of diagonal waves and I have posted both as examples.

There is a 30-year cycle to most commodities with a ± 1-year error rate that still boggles my mind. The long term CRB chart shows this very well with gold doing the same thing but following 5 waves in Cycle degree.

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