With all the ‘moving parts’ and parameters in play, I want to make a clear post for gold stock traders. Absent gold and silver support levels, HUI-Gold Ratio, Op/Twist, FOMC, Fiscal Cliff, Santa Rally, etc. I want to once again make clear the situation on nominal HUI since it is working on its second up day in a row.
HUI broke below an important support level at around 460, which was the neckline to the 2011 topping pattern. When it recently broke down after having risen above this resistance last summer, it was considered a FAILURE of an important technical level.
So with all the noise going on, including from your letter writer, understand that HUI is vulnerable below 460 and will not be reasonably ‘all clear’ technically until it reclaims this level.
Now we return you to your normal programming: CoT coming up, FOMC, Fiscal Cliff and the potential for a broad market Santa Rally.