Today the HUI is touching the 62% retrace level of its cyclical bull market out of 2008, which is also the 50% retrace level of the entire bull market out of 2001.
RSI is as over sold as it was at the bottom in 2008. The low 300’s is a valid bottoming area, as is the mid-200’s eventually. I added XXX and XX because they are real companies doing real business in a precious metals sector that is being declared dead. I have a shopping list of additional items at the ready.
This is of course no bottom call because I do not do those. But it is time for this player at least to put some money to work again and see what develops. It is brutally hard to be a gold bug now, but contrarians must do the work to fight against what is easy and go with what is hard.
