Time is running out for the ongoing corrections in gold and silver. Gold and silver are experiencing the longest correction they have undergone since their bull markets began. I have previously written that I thought the HUI would be going up while gold and silver were still correcting. This was considered "ridiculous" by some folks. I don't wish to offend their sensibilities once again, but I do believe that some folks will notice this happening near the end of this corrective period for gold and silver. The HUI appears to have completed its correction and begun its third of a third wave. Could this really be possible? Let's take a look.

I really do believe that the monthly chart of the HUI is a thing of beauty. The HUI has unfolded in a five wave bull move. The first five waves are clearly visible on this monthly chart. They were followed by a three wave correction. Following the three wave correction the HUI began its Major Wave Three. Minor wave one (1) of the HUI's Major Wave Three ended at the 401.69 high. A minor wave two (2) correction has been taking place since the high at 401.69. It is a good probability that the correction has ended. What is of great interest and a great clue that the correction for the HUI may be over is the 20 month moving average, which is the red line on the chart. I have been saying for sometime that the HUI may be going up while gold is still correcting. The 20 month moving average line since the HUI first crossed it early in this bull market has only been violated during the Major Wave Two correction. This violation was and is expected to occur during Major Wave Corrections. The 20 month moving average should not be violated during minor wave corrections. That line recently has been touched twice and experienced a quick and strong move up almost immediately.

The correction in gold since May 2006 has been making the vociferous gold bulls very annoyed. They know that the price should be much higher based on the fundamentals and it should be much higher right now! Government interference is blamed for the current sluggish state of the gold market. Whenever I am asked why any market is not going up I have a stock answer. No pun intended. My stock answer is, "More sellers than buyers." I don't have a great need to know the source of the selling. Selling is selling no matter who is doing it. We have no choice as investors and traders but to wait until more buying than selling shows up. The various technical approaches I use often provide us with excellent clues as to when the buyers are about to overwhelm the sellers. So, we wait for these clues to tell us when this is happening. At the moment the clues, as I see them, are telling us that the highest probability is one more wave down will soon be starting. If there is a change in this scenario we will have some clues to verify the change. So, as I learned in the good old U.S. Navy in my younger days, the orders for the day, perhaps to be repeated for awhile, are, "Hurry up and wait."

The bull market in silver started months later than the bull market in gold started. However, it apparently is in a hurry because the wave count for silver has caught up to the wave count in gold. Silver also appears to have one more wave down, as does gold, before the current, over ten month old correction, finally ends.

Disclaimer: The contents of this letter represent the opinions of Ronald L. Rosen. Nothing contained herein is intended as investment advice or recommendations for specific investment decisions, and you should not rely on it as such. Ronald L. Rosen is not a registered investment advisor Information and analysis above are derived from sources and using methods believed to be reliable, but Ronald L. Rosen cannot accept responsibility for any trading losses you may incur as a result of your reliance on this analysis and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Do your own due diligence regarding personal investment decisions.