by Avi Gilburt, Market Watch:
Last week I wrote a column on MarketWatch that seems to have stirred quite a bit of debate. Within the column, I was pointing to the potential for a multi-decade rally to be seen in the metals and mining stocks. It seems many of you had very strong feelings that this was simply not possible. Over the next few weeks, I will attempt to address the concerns many of you have presented in your comments to my piece.
First, I would like to point out that Elliott Wave analysis is used to track market sentiment. We use it in conjunction with Fibonacci mathematics to identify turning points and targets with our analysis. Again, as I noted, that is how I came up with my topping target for gold in 2011, which was within six dollars of the actual high. It is also how I came up with my downside target and expectation that gold will likely be cut in half from the high I expected. However, just because I caught two important long-term moves in the metals clearly does not mean I will be correct about the next one. Of course, I understand that perspective. My analysis simply focuses on what is the greater probability being presented by market sentiment, as calculated by Fibonacci mathematics.
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