HUI bottomed vs. SPX in December
Here is the weekly chart we’ve used over the last 1.5 years to gauge the downside in gold stocks (HUI) vs. the S&P 500. I did not originally plan the A-B-C corrective scenario but inserted point B upon the failure last June and we (NFTRH) began scouting a bottom at ‘C’ in Q4 2021.
It’s a ratio, but it seems to work well as an A-B-C downward correction scenario to a larger bull phase that started in 2018. Of course, these are gold stocks so it makes sense that ‘C’ was going to be a humdinger of a painful destination. But it’s over now, for a while at least. Maybe a long while.
Side note: Please Elliott Wavers, if you see something from the playbook that is not right (e.g. wave ‘whatever’ cannot be lower than wave ‘whatever’) please don’t bother writing in to correct. First off, I ignore EW completely and second of all, I don’t like rules. I like open minds and unwashed brains. I’ve never cared for EW with its revisions and alternate counts when the first read happens to be wrong. I prefer saying “I was wrong” and trying to figure out why, not coming up with more mumbo jumbo.
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