Poster’s Paradise

I know you are probably getting tired of me and my bullish rising wedges but that pattern is showing up everywhere it seems. Remember these patterns show up in fast moving bull markets where the underlying item is getting ready to make a near vertical move. These bullish rising wedges are just another consolidation pattern, only with an upward bias, that suggests to me there is an urgent need to move up and in a hurry. When you see the bullish rising wedge show up on an index, such as the HUI or the XAU, you can be sure there will be some individual stocks that will look just like the index.
The first new bullish rising wedge I will show is the $XEU. Notice the bigger blue bullish rising channel that has led up to our bullish rising wedge formation. This chart is screaming ” I want to go higher and I want to go higher now”.

The next chart aught to put a smiley face on some of the doubting Thomas’s getting concerned about how far we have come and that a correction is near. There was a breakout gap 3 days ago on the GLD that was closed yesterday, with the shaking the bush move, that flushed out some weak hands.
Todays action is putting us back above the top rail of the bullish rising wedge formation that is screaming “I want to go higher”.

If the $XEU and the GLD are screaming I to go higher, I bet one of the biggest producers is probably saying the same thing. ABX is still well inside it’s bullish rising wedge but is starting to show some strength in here by successfully testing the bottom rail yesterday.

To really put this bullish rising wedge formation into perspective I will show a daily and a weekly look at some of the other big cap producers. I have been showing these big cap producers for close to 6 weeks now and things could not be anymore perfect at this point in time. Most all have broken out and have done their backtesting so it should be off to the races IMHO.
Lets start with the XAU and the HUI…
The other day I suggested that the bounce off of the top rail of the XAU was a positive sign as it was telling us the top rail was “HOT” and in play.

This next chart really puts this bullish rising wedge into perspective for me as to where it is located on the longer term weekly look. A breakout of the bullish rising wedge formation will coincide with the breakout of, what I’m calling the mid line of the big uptrend channel. Most folks are using all the intermediate term tops to draw their major uptrend channel where as I’m viewing the intermediate tops as only half of the uptrend channel. We shall see.

The HUI is still inside the wedge.

AEM leading the charge.

GG also leading the charge.

ASA.

PAAS.

KGC getting ready to breakout.

SLW bullish rising wedge and flag formations.

SLV still going vertical after breaking out from it’s bullish rising wedge.

I hope I didn’t bore you all to death with these bullish rising wedges. I’m just trying to drive home a point that I believe we are embarking on a major rally phase that if you are positioned right you will be greatly rewarded IMHO. The key word is “positioned” right. As I have stated before, not everyone is going to make money in this bull market, just like the tech rally. The market is not a place for bull headedness. You have to adapt and change as the market dictates or you will be left behind wonder how could I lose money in a raging bull market. Its easy to look back in hind sight and see what happened but the key is to be able to see what lies ahead and to take advantage of the situation when it presents itself.
All the best…Rambus