Comments: I think there's a clear channel line being formed in the Gold stocks. The buy and sell points are as outlined in the chart above. I think we're going to have another shot at $642 tomorrow. I'm kind of bullish on this right now even though it's closer to the sell channel line because (i) we had the downtrend break just recently, and (ii) MACD bullish crossover.
Comments: The HUI is the one that hasn't broken its downtrend yet and it needs to to confirm the the break in the XAU downtrend. It's ironic that the HUI appears to be lagging this time. After all, it's higher trendline is because its September high was relatively higher than the XAU--it was in September that the HUI started to break out but the XAU failed to confirm.
Maybe the XAU is more bullish because it weighs silver stocks more which have been on a roll? That's actually something that I need to check: whether the XAU is more weighed towards Silver than the HUI (it is after all, called the Gold & Silver Index). If you happen to know the answer to that question, please let me know by posting below or by e-mail.
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