Cycle Review, the Next Trade
Wyckoff 2.0 encourages the use of cycles to find the next trend (and this is important) that have yet to start. We knew the media would be bleating about the current stock sell off some months ago, now we believe the next news headline will be gold stocks shoot to new highs.
Gold stocks go up when gold prices are up and stocks are not falling. We can monitor this relationship by charting the XAU divided by gold prices.
The cycle on the SMALL cap stocks expects stocks to form a base in the next few months. Sure that cycle bottom has not formed yet, so CRASH is not yet off the table. But we are hoping that SP500 1100 holds and accumulation sets in. The cycle on small caps is very significant and has been proven a winner again.
The XAU divided by the Gold price. Shows that gold stocks are due for a burst. Price action will be our guide. Quote from a dusty old gold prospecter..''The is money in them their cycles"..