A very simple update. HUI has been pounded down to the support area defined by the lateral cluster that was the May-June pattern, and has filled Gap #1, as expected. RSI is over sold and gold bug sentiment is over bearish. That means the probabilities of a bounce have greatly improved. If said bounce occurs, the key level remains the 50 day moving averages up around the channel bottom.
I am picking up a few things with which to play a bounce. But they are quality items (KGI.to, SSRI added to PG.to, SAND, SAM.to, KLDX and NGD) that I could end up a bag holder on and not worry much about.
The key point however, remains that this is the most intense correction of the year and it’s job will be to shake out a lot of people. I’d love to get the correction over with quickly, but it remains a distinct possibility, if not probability, that Huey will eventually test the (red) SMA 200 at major support. Meanwhile, it has done enough downside work to get a good bounce.