As noted in this morning’s update, the HUI target remains open, unlike those for gold and silver. The target is 375 and has been in place for a year or so.
HUI boinked above 360 yesterday so that is in essence the target area. But the fact that HUI is pulling back today actually helps the case to hit the target in my opinion. Yesterday got a little hysterical in service to silver’s hysterics. And as noted in #613 several of the gold stocks I follow have not looked at all hysterical. Quite the contrary.
It’s not hard to imagine HUI (and GDX, GDXJ and many individual miners) flying a short-term bull flag here as it pulls back in the face of the all mighty Wizard Fed (sarcasm alert). Today’s candle on HUI looks like it could be the first in a couple or three candles that could fly a bull flag (and possibly fill the gap). If it remains orderly on the pullback it’s likely a bull flag.
So let’s remember a couple things…
- Risk is way higher today than it was even in June as that small correction was ending, and…
- There is still a target out there.
It’s up to individuals to decide how to play it.
