Replies to post #65 on Tech Analysis of Precious Metals Miners

[denmo83]

Regarding HUI...

http://stockcharts.com/def/servlet/SC.web?c=$HUI,uu[h,a]daclyyay[dd][p][vc60][iua12,26,9!ld20!ld60!l...

PMFBI, this is just my 2 cents.

[Michael Moy]

$HUI weakness - D_A_N

I'm maintaining a relatively low profile with just NXG and AUY
for the miners. Got hit on PAAS of course. CEF not too bad.
But I have a healthy dose of other stocks which have been holding
the port up when the miners are weak. Action in PAL today was
puzzling given the strength of Palladium and Platinum at the same
time.

I think that some of the speculative money may be headed back
into the broader markets or at least some targetted areas.

One other thing on gold is that the price of oil should keep the
price of gold elevated. Not so sure about silver.

It's interesting that Singapore raised interest rates to fight
inflation.

One other thing that I just realized: this is OEX! I should
have lightened up on Friday. I've been meaning to lighten
up on miners for OEX week and then buy back on Friday
afternoon.

[plyka]

A crash below the 200-day moving average for the HUI? I don't know. It is a very tough call. I can see both a quick crash down below the 200-day, and a rally up. The water is incredibly merky in the gold stock world.

The most likely scenerio, in my opinion, is first a rally to the 255-260 level, followed by another decline to below the 200-day moving average. I just can't see these things breaking down from here-----unless they are much weaker than i had originally thought.

Another very likely scenerio, is that they simply continue on trending sideways, until the HUI hits its major uptrend line---then a blast off occurs. The more i look at the HUI, the more it looks like some sort of flag formation. In this case, we would most likely trend sideways until the weekly MACD starts to bottom out. This i think, may take another month or more.

I must say, any talk about the gold stocks from my part is merely a guess right now. I don't have any clear signals pointing in any direction. In my opinion, anything can happen.

When i'm in this predicament, i like to stick to the overall belief------we are in a gold bull. Combine that with the fact that we have been in a correction for 4-5 months now, and in my opinion, holding up very well. I like to be IN rather than OUT in these type of cases. Since even if we sell off from here, it will be a quick fall and rise.