Skyrocketing Gold Stocks
Don Delavan
Market Waves Newsletter
Email: marketwaves@adelphia.net
August 2, 2004
Are you ready
for skyrocketing gold stocks in a blow-off wave 5 up?
  HUI/XAU
HUI
touched its 2-year moving average on May 10 and again on July
27, probably completing Wave 4 down and the previous HUI cycle.
July 27 was exactly 34 Fibonacci weeks from HUI's all-time high
on December 2, 2003. Plus HUI came very close to retracing 61.8%
of its Wave 3 on May 10.
A new HUI cycle
has probably started and should rally into late September with
Wave 5 up. A break above the 1-year moving averages will confirm
that the new HUI cycle is heading to new highs. Since the previous
cycle peaked in 60 days, the current HUI cycle might also peak
in 60 days, around September 24-28. The targets for Wave 5 up
are at the red lines connecting the tops of Waves 1 and 3, which
are around HUI 315, XAU 140, and NEM 60+ by late September.
Gold Stocks
So
gold stocks might be the most profitable investment during the
late summer months. Inflation fears will probably return because
the Fed is so far behind the curve, which will cause gold stocks
to skyrocket into September like they did before the 1987 crash
when NEM  skyrocketed
122% in 12  weeks! Will we see a repeat of history?
GOLD
Gold
will probably make a second bottom around $375-385 sometime in
August and may touch its 2-year moving average, which is currently
$374 and rising. Then its Wave 5 up should rally towards $500+
by December.
USDollar
The US dollar will probably make a second top around 91-93 sometime
in August to touch its 1-year moving average for a second time,
which is currently 91.22 and falling. Its Wave 5 down should
decline toward 80 by December and touch the outside of the previous
red resistance line. This would confirm that a multi-month rally
in the dollar would start near 80. A multi-week break below 80
would be much more bearish for the dollar and require a different
wave count for gold and the US dollar.
31 July, 2004
Don Delavan
Market Waves Newsletter
Email: marketwaves@adelphia.net
Don Delavan
is the editor of the Market Waves newsletter.
For subscriptions, contact marketwaves@adelphia.net
321gold Inc
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