HUI has spent the week fooling around in a bear flag, which seems logical with the markets under the spell of FOMC. Everything is just hanging around. If markets start flying all over the place and if HUI breaks down from the flag watch for support above 217, or possibly an in-day drop and reversal.
My plan is to remain light until after FOMC and then gauge things. Depending on policy and the market’s reaction, I would like to add positions as long as 217+ is held. If things break down then it is back to the drawing board and in search of bottom retest or what have you. In short, it would be a present day risk management opportunity and future buying opportunity, again, if the macro stays in line. [edit] If it breaks up, I’ll plan to hold positions and let it breathe a bit before adding to existing positions. If anything gets really crazy, we’ll update again.
