Question Of The Week - 6/23/2010

The simple answer is YES, Gold is in a bull market. But, to understand why the rally is marked with corrective labels, I've decided to try something new this week. I've created a chart to visually illustrate the situation in Gold. Go to the link below...

http://www.neowave.com/info-past-interview.asp

when it opens in your web browser, click on the folder "Question of the Week." Inside you'll find a file titled "GOLD Monthly 6:23:10.pdf" - download that file and open it so you can follow along with my answer.

First, notice the Gold chart spans nearly 40 years. It shows a 5-wave move (an impulsive advance), with an expanding bias, beginning around 1972. In 1999, Gold concluded a 20-year, "sideways or down" corrective phase (beginning 1980) that appears to be wave-4 of an ongoing, 40-year bull market.

From 1999's low, Gold has advanced almost relentlessly, but in corrective fashion. Since wave-x5 must be an impulse pattern, the ONLY way it can start with a correction is if all five segments of wave-x5 are corrective and part of a larger Terminal formation (see Chapter 5, page 14 of Mastering Elliott Wave). As a result, beginning at 1999's low, price action in all NEoWave Gold services (for the last 10 years) has been marked with corrective phase labeling.