Gold Stocks; Unless You’re a Day Trader…

Unless you are a momo driven, hopped up speed freak so abundantly populating today’s markets, you might view the immediate – and appropriate – short-term reversal in the precious metals as a good thing. I know I do. Had HUI reached its (short-term) upside target in one big nuke-hyped swoosh I’d have been compelled to either a) take profits or b) hedge.

Instead I’ve done neither. What is happening is that while miners ease on cue, other items in a balanced portfolio are doing the lifting now. Sure, GILD and MZOR as shown previously, are the stars. But how about the long dollar stance? How about the several other positions I’ve taken simply because I liked the charts and felt that the stock market was not quite ready to exercise its projected downside in any measurable way?

So the gold stocks ease and the other stuff, on balance, rises in the short-term. I like it when this sector is in the mirror to the positively correlated items.

As to HUI, let’s leave the short-term targeting for subscribers but take an updated look at the important weekly and monthly charts. Not too hard to interpret, eh? August closes tomorrow and the week closes on Friday. If at 4:01 ET on Friday afternoon this is still in breakout mode, the situation will still be constructive.

hui weekly chart

Monthly still looks really good.

hui monthly

As noted in an NFTRH update yesterday morning, I did not care for the gold sector having taken on an anti-USD stance. That meant gold bugs were rushing into the ‘death of the dollar’ play, which is a joke. Best that the sector grinds out a rally in the coming months against a firming dollar, at least for those of us who would like to make real money, as opposed to day trader money, on the next bull phase. Watch 200 and especially 197 as key support.

Meanwhile, the index is still looking in the other direction despite the weakness that of the last couple to address the war hype.

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