first majestic silver

Looks Like They Are Going Up For Real

November 18, 2014

We all know how the S&P500 responded to the advent of the QE’s, a Twist, and extreme low interest rates. As the saying goes, “It took off like a bat out of hell!” We can also use the old Superman shout, “Up, up and away!” This chart shows how obvious the rally has been since the Federal Reserve introduced and implemented the results of its creative thinking process. What is not so obvious is how the precious metals complex reacted to the Feds creative process. Yes, of course they corrected but just what kind of corrections have taken place? The answer to this question may prove to be a surprise to the creative folks at the Fed. 


S&P500 quarterly chart

The corrective pattern in silver that began at the Major Wave One high at $21.44 represents near absolute perfection. This correction is complete. It is a very rare and I mean a very rare running correction. It is about as rare as the introduction by the Fed of the Q E’s, Twist and zero interest rates. The resemblance to the illustrated pattern is remarkable. This is the most bullish corrective pattern that has ever been put forth and explained by the Elliott Wave Theory. It portends a huge increase in the price of silver!!

“Apparently in this case, the forces in the direction of the larger trend are so powerful that the pattern becomes skewed in that direction."


silver quarterly chart

Actually, the running correction in gold is even more bullish, if possible, than the running correction in silver!

“Apparently in this case, the forces in the direction of the larger trend are so powerful that the pattern becomes skewed in that direction.” 


gold quarterly chart

The running correction in gold is so bullish that the final 5 legs of the C wave down could not fall below Major Wave One. After 60 years of examining charts I have never seen a chart as bullish as these.   
Major Wave Two for the HUI should not correct more than .786 of Major Wave One. That is just about the level where this irregular correction finally bottomed. The next move should be up, up and away!


HUI Monthly chart

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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.

Gold is widespread in low concentrations in all igneous rocks.
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