Thursday, July 11, 2013
Gold is rising in accordance with the gold cycle model, or is it the other way around? The gold cycle model continues to suggest a "double-bottom" for gold, followed by a rise into 2014-2015. I am not a Elliott wave acolyte, but it even looks like a Wave 1 of a larger Wave V may have begun, which would put the next predicted low in early 2014 as the bottom of Wave 2, followed by the strong impulsive Wave 3.
Wednesday, July 10, 2013
The XOI.X Amex Oil Index, one of the better performing cycle models as can be seen from historical charts, suggests strong upward pressure for prices over the next year. The usual caveat for this model is that it only incorporates cycles with a period of <15 years. However, given the strength of the signal, I think that the model will continue to perform reasonably well.