Here is a closer view of HUI’s chart from this morning, for those who like visual reference. A clear break above the EMA 10 and broken red trend line would be needed to put the bull case back on.
[Edit] 12:30 (PM) US ET:
Here’s the current view by 2 hour chart. Today’s activity is enough for me to creep back in. I was able to get RIOM while it was in the red this morning and have added CEF, AAU, SAND and TGD at reasonable prices as well, to go with AKG. In a bull market, buying these things on down days works well. In a bear, it is not usually the way to go in my opinion [see edit below]. So I say ‘Huey, prove something to me’ and with the tentative retaking of 280, it is trying to do that.
The strategy remains the same; buy perceived quality to be prepared for whenever the bear ends. That is by no means indicated, but HUI has done its part by getting back up and hence I am back on it. Anything is possible for me in this market, from adding heavily to selling out to hedging with DUST, ZSL, DSLV, etc.
Even if the rally is back on, it is counter the downtrend. I could see a scenario (just riffing here) where the precious metals and commodities pop with the broad market’s final surge and then drop again when the big market finally tops and drops. It could be that coming drop that would be bought for the long term in the precious metals. Again, just thinking aloud. We should keep open minds about a few different scenarios.
[Edit] 1:10 (PM) US ET:
Ultimately, support/resistance need to be the arbiters. When dealing in a short term rally potential as we are now, the failure and re-acquisition of support was key. Hence, that is why I bought the re-taking of support. In a bull market, you routinely buy pullbacks to support. In this market I chose to buy the re-taking of a support that is a rally parameter. You do not want to buy broken support in bear markets.
