2 replies to this topic

[fib_1618]

As a follow up to my post in mid July of ''accumulation" in this sector...this area of the market is looking rather top heavy at this time - so I am closing all of my stock and contract positions as of this morning and taking my profits. It may be early - but last weeks sharp decline in the gold stocks - especially those who have been leading the way up (BGO and CDE as examples) - with very little in the way of a decent bounce today in the face of another sharp dollar decline - isn't sitting well with my "instinct". It should also be duly noted of the heavy media recognition that gold received last week when it took out the February highs intraday - which was also the same day of the nasty reversals noted in all of the gold and silver stocks - is a pretty good warning of a potential trend change alone. No downside objectives at this time - but better to take the profits now then to try to understand the underlying reason why this is happening at this time. And besides - earning anywhere from 75%-100% return on your money in less than 3 months is nothing to sneeze at. Fib

[PIK.]

Fib, agreed, there appears to be weakness in the PMs right now. If the 50 SMA/180 area doesn't hold as support on $HUI I would anticipate a probable test of the top of the previous ascending triangle (in the same vicinity as the P&F bullish support line and 200 SMA). A solid close below 191 should start the ball rolling down some more. Most likely there are plenty of buyers waiting to go long again on a healthy correction.

[PIK.]

Fib, I also failed to previously mention that $USD is also right at long term support (92 area) and may get a bounce which should start a further correction in gold and gold stocks.