Nigel Farage discusses on King World News that the banks in Europe are leveraged 60-70 percent. HUI Index is still a wait and see.
The world is definitely in an interesting position AGAIN.
Mind you… nothing has really changed behind the scenes over the past couple of years.
I like listening to Nigel Farage, he’s a real thorn in the butt of the guy’s and girls who would like to condition the world for dominance.
Nigel Farage is an ex gold trader and mentions the fact about buying gold on dips. I agree with him on the fact that you should have gold but my personal opinion is 10 percent gold in your portfolio is a nice number and that comes from the guys that have way too much money. Gold is only insurance that it.
HUI hourly April 20, 2012 Patterns Inside Patterns
Looking at the HUI Index, there are lots of patterns. I read a book a long time ago “Trade The Trader” by Quint Tatro. The idea of the book is, you need to understand the competition and trade accordingly. I have to say that there are no rules for the patterns in the chart above. I also have to say that I have no answer for what you see in the chart other than we still have to wait. One thing about reading the charts, is sometimes you have to wait and see what unfolds and then you get a picture that takes shape and it all becomes clear. Right now things aren’t clear just looking at the Gold Miner’s. When we look at the overall market, a clearer picture comes through.
Russell 2000 April 20, 2012 Hourly Chart
The other day I mentioned that the gold miners were consolidating and that a buy was coming up. I also mentioned the fact the gold stocks are stocks and go down with the rest of the stock market when there is a sell off or consolidation/correction.
Looking at the chart above, the Russell 2000 is in a bearish channel and should breakdown to possibly find a low in the first week of May. One major thing to think about is that the first week in May could be the week the financial markets break down. The next wave coming up is a third wave, and the 3rd wave is the fastest, strongest and is the best show on earth when it unfolds. You don’t want to be on the wrong side of the market on wave 3.
One thing about The Elliott Wave Principal is the fact that as the waves are unfolding there are varying interpretations, however, the 3 main rules can’t be broken.
Martin Armstrong from Armstrong Economics said in an article that according to his model, the financial markets would see expansion in June. My model shows a pivot point in the middle of June. I would like to add that I enjoy reading Martin Armstrong’s work.
For now I still hold TZA and I am still waiting for an opportunity with the HUI Index. Nigel Farage is always interesting to listen to on King World News and you should listen to him. I think we should have more people in the world like Nigel Farage. As time goes on, there is a good chance that we will.
