XAU , Philly Goldstock index.

xau 20 nov 2011xau feb 19 2014

Then (Nov. 20, 2011) and now charts. There are still two possibilities. The now 3 year bear is a wave and is still incomplete, or it is A-B- bear from the second top and is also incomplete. Both need at least a 4th and 5th wave. On the positive side the XAU has averaged about 120 over the past 30 odd years so these stocks are already “undervalued”- see previous blogs. Keep in mind that this index contains 13 goldstocks, not a single one of which will necessarily follow this pattern, but on average they should.