HUI 400

Comments: I'm guessing the initial target for this move will be HUI 400 or so. That would mean a double top in the HUI. Hopefully it won't stop there however. Still, the gold miners for the most part are not maintaining that much leverage during this move, which makes me wonder whether this move will be all that great. The Gold chart suggests that the measured move will be to about $750 however. Maybe it will be better to be in SLV or CEF than in miners. Or maybe a mix of SLV/CEF and miners.

Comments: Although we've been in a uptrend recently, the XAU to Gold ratio has not yet tipped its hand. In fact, the leverage, with the exception of the occasional upburst, has not been that great so far into this move. Once the formation is broken, it will be a very big move in one direction or the other. About 1.00 up or down. So up to 5.7 or down to 3.4.

From the low in January to the close in Friday, the percentage gains for precious metals investments have been:

SLV: 18.66%

HUI: 16.75%

GDX: 15.58%

CEF: 14.68%

GLD: 13.50%

XAU: 13.00%

The fact that the XAU is the worst performer of the 6, i.e., that Gold and Silver stocks as measured by the main index have underperformed Gold and Silver, definitely raises some issues about the destiny of this move.