HUI is back above the 235 marker after ticking a slight lower low this morning. From the last update…
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.
‘Stay lost’ is an important distinction. Otherwise the ‘drop, shakeout and bounce’ scenario is still in play, especially with a weekly close coming up today. Bottom line: the oversold bounce/rally scenario lives. But if so, it’s not yet the right situation for a uniquely bullish view on gold mining, as the bounce is happening with bounces in many other markets, including some of the inflation trades.
