What is Delta? The discovery of The Delta Phenomenon as it relates to markets can be best captured by way of a story. The current weekly charts for crude oil, gold, the HUI, and silver are posted below. Because of this fact, an explanation of how the Delta turning points were discovered is called for. For those interested and using the wave theory, this knowledge is invaluable. It is a little known fact that every Elliott wave of any size terminates at a Delta turning point. The HUI will be starting a third of a third wave and it should be substantially greater than the previous rise." That was a 243% rise in approximately 12 months. The previous rise in the HUI went from 165 to 401. Approximately 6 months have elapsed since we last saw new highs in the precious metals complex. The investment account is 100% committed and the trading account is 50% committed. When this decline appears to be ending I will be issuing a buy signal for the balance of funds in the trading account. We are fast approaching the start of the most dynamic part of this precious metals bull market since it started 6 years ago. The types of corrections that are taking place do not require new lows in order to be complete. "The HUI, gold, and silver will experience one more decline lasting approximately 3 to 6 weeks before the correction that started in May 2006 will be over.
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