Not much of a rebound today, considering what other indices did.
The NDX took off from this morning's low. Even the very broadly-based Wilshire 5000 managed a decent move up. As a percentage of recent declines, the gold stocks didn't show me much today.
The XAU closely approached the 103 level, noted by John -- SilentOne, and by others as a level to watch. I think the count for the decline of the last few weeks being a fourth wave is still viable. Could be a triangle/declining wedge, and today's move up, though not massive, nevertheless does look like it's five waves.
Yet I wonder.... I'm bearish on stocks as a whole, and think that we are likely getting a corrective move up from last week's low. Are we really ending up a correction going down in PM stocks at the same time?
The US Dollar has made a double top on a daily chart, but will it go back down? I think the precious metals need it to, despite them not being inverse all that much lately. I think that as yet the balance of evidence is for the bull move in the Dollar to continue. We've raised interest rates and the major foreign countries really haven't or haven't done it as much as the US.
I certainly don't have a crystal ball, but gold bullion is not looking good right here. On balance, I think it's a bearish picture for the HUI and XAU
Best,
Doug
