I do not love micro managing the gold sector, but here we are doing it again because well, it’s the gold sector and it is intense. Please pardon the micromanagement if you are not a gold guy or girl. Please keep in mind this bit from this morning’s update…
“The sector will go up and it will go down (PDAC and its associated hype are right around the corner and HUI is after all, at key support). Traders will trade but macro fundamentalists should always keep in mind whether or not the real fundamental backdrop is constructive.”
So who is surprised at the bounce right at 195?
Again, traders (and their machines) are going to work this thing over to the upside and the downside. PDAC is coming and this morning we are bouncing. If 195 was notable support – as we suspected it was – HUI was always going to try a bounce from there. We are not the only ones watching charts. I’ve even re-bought a couple items while still tentatively holding the silver short (NUGT short covered last night). But keep in mind how important 195 is as support.
The macro funda continue not to be supportive, but that did not stop the big bounce that began in December, did it? So I ask you to please understand whether you are a trader or an investor and proceed accordingly. If you are a trader you took profits on the last bounce. If you are an investor you wait for buying opportunities that ideally would include funda and washout technicals. Alternatively, a higher high to November plus constructive funda would be good too.
Now, unless anything not already accounted for goes on I am going to ease away from the gold micro management and simply ask you to mail me using the contact link above (at nftrh.com) if you have any specific questions.