Elliott Wave 5.0 "Reboot"

Friday, April 8, 2016

HUI, Gold Stocks Review:

There is a very good chance that this gold bullish phase is a false move. That never means for the contrarians to not to participate, because false money can be turned into real cash when they sell. I know they were already in a long position way before the bottom hit in February. 

Many gold stock insiders bought in when the gold stocks crashed in mid June 2013,  so all the investors that are jumping in now are late to the party and they will eventually get burned. 

The HUI soared higher today, but I think there should still be a correction to come, followed by another final leg up.  The HUI is loaded with gaps and a gap just recently opened up again.  This gap at the 180 price level should get closed before the HUI moves up one more leg. Gaps always have a 90% chance of getting filled, so it is not good to ignore obvious gaps.  

Short term I'm bearish, but that can be part of an expanded pattern, which are very bullish patterns.