Comments: Mentioned yesterday, the Oil Services Holders (OIH) is continuing its break out as Oil surges past $60.
Comments: As we approach the FOMC interest rate policy announcement in about 1.5 hours, it looks like Gold stocks are anticipating Gold strength. It certainly helps a lot that the media fanned the fear of aggressive anti-inflation rhetoric being present in the statement throughout this week. Now that possibility appears to be priced in, leaving the possibly of an upside surprise for gold stocks (i.e., a less aggressive policy statement).
Comments: However, when everything is said and done, the move in the Gold stocks can't be trusted until Gold confirms the move by moving past $605 per ounce. Unless that happens, the breakout in the HUI could easily turn into another meltdown as we saw in September when Gold failed to confirm the rally in the HUI.
Sentiment: Bullish. Finally, there is a possibility of a break in the downtrend for gold...
No comments:
Post a Comment