The HUI gapped the open. There is also a gap below highlighted in yellow. We should not worry about these because if they are breakaway gaps they are signs of strength. We should however, watch all the other conditions noted in the previous update.
Now this could be a classic gap and trap, with the pop over the 50 day averages getting the gold community very excited and set up for more disappointment. But a real rally has to start somewhere and this could also be a statement move. Again, let’s patiently check off our conditions one by one.
As noted would be the case, I added/bought laggards after the open this morning increasing XXXX and XXXX and re-initiating XXX, which were all negative or flat. Cash is still at 67% in the speculative portfolio.
I will be out for much of today. Keep an eye on the conditions for the rally.