Clear drop out of the symmetrical triangle pattern and move below 50 MA. Starts to increase probabilities for continued weakness in this area. Trade price, but this is a good risk assessment tool. Longs may want to consider booking some profits and/or adjusting stops.
http://stockcharts.c...38949121,Y].gif
HUI/POG Ratio
Started by
PIK.
, Nov 23 2004 06:49 PM
2 replies to this topic
#1
Posted 23 November 2004 - 06:49 PM
Trade based on what you see happening, not what someone else thinks or hopes will happen.
#2
Posted 24 November 2004 - 09:01 AM
Hi Betel,
I agree and a great chart/tool for the sector. I was stopped out of many positions yesterday and will have to now wait for the green light given by this ratio again. I still hold many positions LT, but the more liquid stuff is tradeable.
Speaking of liquidity, I wonder if the general market is about to correct a bit more after Thanksgiving? When I see miners weak like this in the face of a strong gold price, it is usually a precursor to broader selling. I also wonder if the oil sector (particularly its equities) has started a new leg which can also drain capital from the PM sector.
cheers,
john
Edited by SilentOne, 24 November 2004 - 09:04 AM.
"By the Law of Periodical Repetition, everything which has happened once must happen again and again and again-and not capriciously, but at regular periods, and each thing in its own period, not another's, and each obeying its own law ..." - Mark Twain
#3
Posted 02 December 2004 - 07:39 PM
Ratio chart gave the warning again prior to the sell-off. Its going to need some work to re-group from here.
Trade based on what you see happening, not what someone else thinks or hopes will happen.