Monday, August 22, 2011
Otto's making me post stuff today.
$HUI is up strongly. It's beaten through the major horizontal resistance at 570-585, and is now attacking the 605 area that was the April high. GT considers 610 a vital point, but I feel the 605 resistance is insignificant compared to the major resistance we've had in the 580s area.
So is it off to the races already?
GDXJ looks good. GLDX has been looking like crap, meaning the explorecos weren't til now participating in $HUI's rally; now it looks a bit better. However, both of those have SMA resistance coming up soon. I suggest you chart them.
SIL, the silver miners ETF, looks decent right now. But I'd feel better were it to bust through $28.
Gold up silver up. COPX, the copper miners, still looks horrid.
So, again, this is the precious metals safety play, with the producing miners getting bought as proxy all of a sudden, and with silver strangely making money off the fear play instead of getting crippled in the greed play. I.e., right now, silver is gold. If that changes, get out, per Biiwii.
And again, go read Guy Lerner, cos he says broad market sentiment is so bad that the contrarian play is to buy the broad market.
It'll all change in a week.