Well, we are certainly getting the follow on momentum we wanted to see. More and more weekly MACD’s are triggering up, following our leader examples, AG and PVG. In fact PVG’s weekly TRIX has also triggered. Good stuff.
Daily HUI is firming the break above the 50 day averages and there is obviously something more to this rally than any attempt made so far since October. AROON remains in a downtrend. Things look good and bullish but I have drawn in a (red dotted) visual resistance zone at or below which HUI is likely to hit some turbulence.
Since I am not keen on day trading miners that I think have a good future ahead of them I will plan to do two things; 1) keep cash on hand as usual and 2) entertain buying the heavily battered DUST 3X miner bear fund for day trades only, against long positions. I’d rather day trade that than go in and out of what I consider quality miners.
But the main point of this update is that the HUI is getting the follow through we wanted to see and we now we want to see more weekly MACD’s trigger and eventually weekly TRIX. In the meantime, there will be volatility. Be prepared for it. I am going to use the likes of DUST to aid in keeping me strong enough to buy and/or hold that volatility, assuming of course that the rally continues to look like a real one. This is not recommended for anyone else necessarily. Just what I am planning to do.