Replies to post #802 on Justa's Dive Bar

[Justa Werkenstiff]

EA: How were my 4/5 "sells" on the MINERS premature "to say the least?" GDX was trading right around here at $41.55 when I said "extreme caution" is warranted. No sell was issued on gold.

[chainik]

<New highs quite possible before this run is over IMHO>

I minor pullback first (HUI 330-340) would make more sense here.

[chainik]

Heinz is bullish, but, like everybody else, is looking at this huge resistance around HUI 360-370...


trotsky
sentiment update, April 10
April 10, 2007 12:12PM Registered: 2 months ago
Posts: 138
remarkably, the recent rally continues to be marked by complete disbelief. the Rydex pm fund's cumulative cash flow ratio has fallen to yet another multi-year low as of yesterday (at 134 points). this is in stark contrast to the fund's excellent recent performance.
rallies that are accompanied by skepticism have a good chance to continue in the medium term (weeks/months).
the XAU put/call OI ratio (3 front months combined) stands at 1.19, which is well within historical bullish parameters (which are bounded by the 1.10-1.45 levels).
in short, it appears that the probability of the rally continuing is high. should the HUI overcome the resistance at about 360, one can probably expect a retest of the highs at 400 at a minimum. the 360 level however remains formidable resistance for now.