In NFTRH 710 it was noted that HUI 240 area was a line in the sand to a more bearish near-term view. I just want to clarify that nothing is absolute in the markets or in TA.
So for functional purposes let’s refine it to last week’s lows at 235. Even there, an index can spike lower, shake you out and proceed upward. But in general, if HUI 235 (actual: 234.56) were to be lost, and stay lost, a negative marker would be in. Otherwise, I am holding some positions to see if it can bounce.
@gary, what is the difference between holding usd or buying UUP etf? I was doing some preparation for later this year and wondered about this.
Well for me it is that holding USD is prep for deploying USD. I think I had UUP at one point last year as Uncle Buck got bullish but of course sold it way too soon. Now risk vs. reward holding a USD price tool is not good IMO.
If I may add to Gary’s answer: UUP tracks DX – relative strength of USD against basket of foreign currencies. So if you have $1, then in one month time you will still have $1. But if you bought $1 worth shares of UUP then depending on strength of USD against foreign currencies (mainly euro) you may end up with more or less than $1 one month later. Obviously you are also paying fees to UUP etf.
@Gary: is low of Sep 21 (224) becomes new support zone from chart guy point of view? Btw, Aussie miners 10% from COVID lows, and recent production updates tell the same thing: cost of diesel, workforce shortage.