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LIVE CATTLE:

The cattle market fell right into place very nicely although the bottom at A was several weeks premature, based on the long term 233-week cycle I was waiting for. (This cycle represented the end of the entire sideways market we have had since the highs were made in cattle more than four years ago.) On Chart 2, you can see the three waves downwards very nicely marked out, going into the 233-week cycle. Then the first major wave up (I) with its correction (just about 61.8%), followed by our second wave up (II) with its ratio projection to the 70.50 level. After the correction to this wave, we will be ready to buy into the market again for the third wave up. This should take us up through old highs to the $ .80 level. The absolute top will be at hand when the pattern has been completed, price ratios from wave II have been satisfied, and the 'up' time cycle has been completed.

GOLD AND SILVER:

The precious metal markets have, as should be no surprise, extremely similar cycle frameworks. Gold and silver both topped out on the 34-week cycle from the bottom. And at that point, the silver market had perfectly satisfied each of my three Fibonacci categories. The pattern delineation was perfect. It had completed minor wave 1, minor wave 2, and was in a third subwave (z) of minor wave 3, subwaves x and y having been completed. The 1.618 ratio objectives of wave 2 gave an upside target of 14.00, and the 1.618 ratios objectives of subwave Y gave a target of 15.00, confirming my original target. Hence, we had pattern completion, ratio completion, and cycle completion, and the market collapsed five dollars lower within the next two weeks, a dramatic example of my Fibonacci techniques at their best.

To continue the analysis for silver, the current down cycle should be coming very near its end. We have had two major down moves (I and II) and are now in III, the final leg down. The strong up cycle should begin once we have passed the 55-week pivot point (89 weeks from previous low). Our price objectives at $8.00 represent the 61.896 correction of the first major leg up from $5 to $15; since that represented only the first major wave up, which will take out the $15 and keep going up to the next ratio objective. We thus have the ratio, are very near cycle completion, and very close to a pattern completion – all systems should be ready for purchases in a short period of time.

Likewise on the gold futures -- we are nearing pattern completion, cycle completion, and the 61.8 ratio has already hit. When the cycle has passed, I hope to be fully committed to the long side for the next major move up, which will take out the $500 level and keep going.