A simple update of HUI’s daily chart.
Why do I stay on top of this lowly sector? Because when the macro turns it will be special once again. With the macro bullish but at high risk I want to be on top of all themes, both cyclical and counter-cyclical. It can get tiresome, but the work has to be done consistently.
Preamble aside, HUI is still trying to put on its counter-trend bounce. It’s in a little ‘w’ pattern and RSI and MACD, while still negative, look constructive for the bounce theme after yesterday’s decline and today’s rally to keep those indicators in good shape.
The bounce target continues to be the down-sloping moving averages. Let’s call it the low 290s. Aside from a bounce, the sector is technically broken on the short-term, and its fundamentals stink. The thing is though, the technicals were good in May while the fundamentals stunk. With one bad turn in the macro markets the fundamentals could slam positive. What then might the technicals do?
Open minded, as usual. Right now though, it’s bounce only (if it ever gets going).
