HUI Gold Stock Review

 

hui-oct-12-2016

 

Last time I showed you a potential Intermediate degree 4th wave top, based on an expanded wave start. Any expanded wave bottom will work for any “B” wave rally as well, so if this does correct deep enough or long enough for another Intermediate degree correction to take place, then another “C” wave bull market would get added on.  In this case it I can take a zigzag correction as my first move, would be part of an expanded flat. 3-3-5 would be the final count.  

There is nothing I can use to find a potential (B) wave bottom here except a 60% correction, even then we want to see a very bearish mood at the same time.  Some gold fans are bullish all the time, but that just tells me they got caught up in the recent move as well. 

The Fed is jawboning us with all their potential rate increases, but they can get off their high horses and just do it. All the way from the 60’s to the early 80’s the rates were going up and they still could not kill the gold bull market.  In those days it was true inflation, not this crap we have now. Inflation is theft of working peoples money, and the only way to fight it is to refuse to play their game with every means possible.   

If the working class were to all get 20% pay raises every year for 4 or 5 years, then you’re going to see inflation like never before.

Buying gold and silver bullion will help to mitigate inflation, but that only works if you end up buying it low enough or cost average it. Never use gold stocks as an inflation hedge except to move the inflation into your account, better known as “profit”.   

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