HUI Chart & Commentary

(click to enlarge)

Comments: Looks like the Gold Bugs Index may be breaking out. With volatility as measured by Bollinger Band width having dropped to extreme lows, the resulting move may be fast and furious--hopefully in an upward direction! Partly because of the run up in GLG due to the announced merger with GG, yesterday was a huge day for me so I felt compelled to take some profits. However, that may have been a mistake in light of the subsequent breakout in the HUI. Now that the HUI has broken out, I will likely be looking for a decent reentry point.

Sentiment: Short term Bullish

PM Portfolio Exposure: 49% + Some Calls.