Comments: Gold looks set to break its downtrend, which all but assures that the HUI will reach its price target at 345. After a surge, I would expect some consolidation in Gold that may go on for quite some time rather than an acceleration straight up. Regarding the HUI, in the short term, the 200 day moving average at 324 may provide some resistance, especially since now we are trapped between that and the 50 day.
I converted all of my QQQQ shorts into gold miner longs the last two days. The general markets are crazy right now. Earnings are pretty good, but guidance going forward is so so and the economic results are coming in pretty horrible. Still, this market is looking like it will seize just about any positive and try to rally on it.
Comments: Silver still needs to confirm the break out in Gold. So far, I don't think it has. It may be time to switch into some silver miner shares soon however since the downtrend break in the RSI seems to suggest that a downtrend break in silver (above $12.50) should be just around the corner.
Comments: I also like OIH (Oil Service Holders) and its components on this pullback. For instance HAL looks pretty decent and I acquired some shares + calls today in it.
I might be switching a lot between Gold, Silver and Oil shares in the coming weeks.
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