Gold & Silver Surge & Cycles

Stock Indices Completing 40-Year Cycle of Stock-flation;
Gold & Silver Confirming Bottom; Surge into January Likely!

12/06/14 Weekly Re-Lay: “Stock Indices have fulfilled the multi-month & multi-year potential for an overall advance into 4Q 2014… but remain strong.  This could allow the DJIA to spike up to its 2014 projected high and upside wave targets from the past several years…

Stock Indices have stretched their advances into the extreme month – Dec. 2014 – projected for a Major peak.  While there was greater synergy of weekly cycles in Nov. 2014, the outlook has been for an advance into 4Q 2014 – when multi-month, multi-year & multi-decade cycles converge.

A peak in December would not violate any of the longer-term cycles and could even provide a more precise fulfillment of the 40-Year Cycle from the Dec. 1974 bottom.  With several Indices stretching into the extreme month (time) for this peak, it is possible that some – or at least one – of them could stretch to their extreme price target.

That is even more so now that one of these Indices has again corroborated those upside objectives with multiple weekly LHRs (extreme targets & resistance).  So, as the Russell 2000 & NYSE show signs of underlying ‘weakness’, the DJIA remains on course for a date with destiny

In order to place that in context, a review of a couple July 2014 Weekly Re-Lays is necessary… Throughout 2014, the DJIA has continued to build a case for an ultimate surge to 18,150…Since entering the accelerated phase of this advance – another sign of an impending peak, in line with the oft-cited ‘birth pain’ analogy (as market swings increase in frequency & intensity) – the DJIA has added some corroborating targets to that ~18,150/DJIA objective…

A rally of ~2,300 points from the Oct. 15th low of 15,855/DJIA projects a rally to ~18,155/DJIA – creating multiple 2DGR wave objectives at the same level.  Hmmmm.

A few weeks later – on the Nov. 14th weekly close – the DJIA created an extreme upside weekly target/resistance (weekly LHR) at 18,132…on the Nov. 28th weekly close – the DJIA created a new extreme upside weekly target/resistance (weekly LHR) at 18,183.  And, at the same time, it created a new monthly Raw SPR (the monthly projected high) for December – at 18,160/DJIA.

And, at the same time, it created reinforcing upside targets and new monthly resistance points – at 18,136–18,191/DJIAHmmmm.

Now it’s getting interesting.  There is synergy of weekly LHR targets at 18,132–18,252/DJIA.  There is synergy of monthly resistance & projected targets at 18,136–18,191/DJIA.  There is synergy of Major upside wave objectives at 18,154–18,272/DJIA, which was corroborated by the most recent wave target at ~18,155/DJIA

Gold & Silver are continuing to validate intermediate cycles that bottomed on Nov. 3–7th with Gold reaching the lower end of its primary, 3–5 year downside target (1127.0–1132.0/GC).  That low created a ~4-month high-high-(low) Cycle Progression and a 22-week low-low-(low) Cycle Progression, setting the stage for an intermediate rally.

Gold & Silver then rebounded and fulfilled 2-4 week objectives in late-Nov. – with Gold matching the duration & magnitude of its October rally – before spiking lower on the ‘no vote’ in the Swiss gold referendum.  That was expected to be a short-lived spike down – a knee-jerk reaction to a fundamental that was already priced into the market late last week – and those metals were projected to bottom on Dec. 1st or 2nd.

That took place with Silver finally reaching its corresponding 3–5 year downside target (14.540–14.650/SI) while Gold held above its Nov. 7th low.  That fulfills another Major objective and sets the stage for a multi-month bottom.