So is the 'correction' over?

[LPA]

Well, logged onto kitco this morning and see that Gold is back up to a nice level around 660 and copper has risen over 12%!

So does this mean that the carnage of the past two weeks is coming to an end? Or is this just a deep breath in before the final exhale?

 

[Sean K]

I am still cautious as will be many others. Will only take a little bit of bad news for the route to continue for a few more %.

The more bullish will have another opinions of course.

0922 [Dow Jones] Downdraft for Australian gold, base metal miners looks to be
over for now, after copper rallies 13.5% overnight, while zinc, nickel also post
solid rises, and spot gold extends move higher, last US$665.70/oz, up US$8.00
from this time yesterday, helped by a bounce in crude oil prices. All this seems
to add up to a green light for resource stocks to move higher though buyers will temper any excitement with memories of falls over past week. Among miners, BHP Billiton (BHP), Rio Tinto (RIO.AU) sure to rally, as will Lihir (LHG.AU), Newcrest (NCM.AU). Posse of nickel miners likely to gallop higher. (RCB)

 

[powerkoala]

Finger Cross everybody....
Here comes the next BIG bull

 

[professor_frink]

I think we've still got another leg down to go. Some consolidation first, then another leg down. But then again, I'm also an idiot.

 

[noirua]

It may depend on whether there are a lot more speculators in highly leveraged positions out there or not, who may be waiting for an opportunity to unload. Perhaps one point made by Doctor Doom, that it is best to have 50% to 60% in cash at the moment, is right.

 

[Sean K]

Bounce!!

For now. Expect a taper off this afternoon I reckon.

Too early to jump back in, imho.

 

[LPA]

I think that the point to jump back in was two days ago....I just wish I had some expendable cash to have bought some more OXR at $2.56 - it's now over $2.90 on today's news...that's the way it goes I guess

 

[GreatPig]

To me, the XAO is currently in the middle of nowhere, between two support levels, which makes me feel there could well be more down to come.

A nice day for the resources today, and I did get some more BHP, but I'm not jumping back on too much else yet.

Cheers,
GP

 

[Sean K]

This could be the dead cat bounce we haven't really seen yet.

We are at the mercy of data out of the US right now. Let's hope for the news comming out the next 2 days to be perceived well.

 

[saichuen]

the correction is over so fast?!?!? time to jump back in for a ride up?!???

probably not. even in a dip, there will be short term uptrends. this is pretty much like in a peak, there will be short term pullbacks.

happy trading!

 

[powerkoala]

uhm.. is it the bull lost power or just taking a break ???
seems this will be going down again...
oh crap :swear:

 

[LPA]

It looks like the market has given up some of it's earlier gains, but as long as it doesn't go lower than yesterday than I am happy Basically, from my entirely uneducated view, it seems to me like the market really really wants to be bullish but is just waiting for some confidence boosting results before the buyers come back in force....that's why it's going up fast and then floundering. As long as we see a few days of small gains, or at the least stability, then I think the confidence will come back and we can begin the next leg But I feel that that won't happen for at least one or two more weeks as we wait for US interest rate news and what their market does.

 

[powerkoala]

give up a bit in aussie market is acceptable....
give up to red color in nikkei ???
and future dow jones index also red again ???
what if this just dead cat bounce ???
hmmmm..... idea anybody ???

 

[yogi-in-oz]

Hi folks,

XJO ..... will likely be positive for a day or two,
but will be looking for another downleg, around
26-29052006 ..... ???

..... and yet another XJO negative period, may be
coming our way on 07 June 2006 ..... will also be
watching for a big world event, at that time. This
event may not be directly to the Bali Bombings
in October 2002, but this time cycle has been
projected ahead, from that period.

Figure the lows for 2006 may well come 180 days
from the highs on 10 May 2006, targeting
07 November 2006 for the lows, this year.

happy days

yogi

 

[michael_selway]

Hi folks,

XJO ..... will likely be positive for a day or two,
but will be looking for another downleg, around
26-29052006 ..... ???

..... and yet another XJO negative period, may be
coming our way on 07 June 2006 ..... will also be
watching for a big world event, at that time. This
event may not be directly to the Bali Bombings
in October 2002, but this time cycle has been
projected ahead, from that period.

Figure the lows for 2006 may well come 180 days
from the highs on 10 May 2006, targeting
07 November 2006 for the lows, this year.

happy days

yogi

Does that contrast to the below? or is the above only Minor Negative cycles? or the below is the exception which will go agaisnt the downtrend?

..... and on ZFX ..... so, you think it's high now???

Come back in December 2006 for another look,
but more importantly will be the run up into
December 2007 ..... should be HUGE !~!

If we get time on this end, this could be a good
project ..... "tag-the-zinc-stock" ..... lol

have a great weekend all

yogi

thx

MS

 

[nizar]

This could just be a dead cat bounce, as they call it

I would like to lose a 100-200pts for a good solid correction before the next leg up.. but this time please make it the banks that get hit!

But i think today was positive in that it indicates that general market sentiment is still very bullish, not like in the US, where a 60pt early rally was used as an opportunity to dump and DOW closed in the red...

 

[wayneL]

This could just be a dead cat bounce, as they call it

I would like to lose a 100-200pts for a good solid correction before the next leg up.. but this time please make it the banks that get hit!

But i think today was positive in that it indicates that general market sentiment is still very bullish, not like in the US, where a 60pt early rally was used as an opportunity to dump and DOW closed in the red...

Corrections tend to be 3 waves, so one would expect a bounce before a further down leg.

Then it becomes interesting. That corrective 3 wave pattern could become wave A of a larger 3 wave corrective and so on.

Enjoy

 

[chromatic]

Corrections tend to be 3 waves, so one would expect a bounce before a further down leg.

Then it becomes interesting. That corrective 3 wave pattern could become wave A of a larger 3 wave corrective and so on.

Enjoy

Hmm, not sure but by my count, we're on wave A where wave 5 was 5400 on May 10. I'm no fancy EW theorist but don't we need to retrace to somewhere around wave 3 peak (Feb 02, 4980ish) before wave A is over?

For XJO, my spidey senses tells me resistance at 5170 where he had previous early April support. Does that sound right to anyone?

 

[tech/a]

Well it could be.

 

[wavepicker]

All I can see is a market that appears to be falling impulsively, with no evidence to suggest that the current trend has ended