Elliott Wave 5.0 "Reboot"

Sunday, December 27, 2015

BGMI Barron's Gold Miners Index 1980-2015 Cycle Degree Review




I gave up on my 1980 Cycle degree peak, but now I have to bring it back into play as I think gold stocks are also in a triangle. There may be a chance for a "B" wave rally, which could retrace 50-60% of the entire bear market before heading down again.  In the worst case we suffer a longer and frustrating decline that would have to break or match the 2000-2001 low on the BGMI chart above. 

This would complete a pretty big triangle lasting 36 years, if it were to complete in 2016. This is one Cycle degree top I may have to change, but for now we have to see how much deeper gold stocks will go. My Megaphone lines suggest a triangle. The HUI wave count will be much the same, except it will look more like an impulse. This was also the major reason everybody switched to wave counting the HUI.  

Even now gold stocks look like they can still break lower, and even if that does not happen right away it could still happen from another "B" wave top in Intermediate degree.