Tuesday, June 19, 2007
HUI - Gold (GLD) Ratio
Digging up an old chart from March. The chart's premise is still valid; Huey-Gold is either Double topping or preparing for an eventual launch of epic proportions. So what's it gonna be boy? If that's a bullish ascending triangle, we could be stuck in it for many months yet before resolution. We believe big picture fundamentals are on gold & Huey's side, but it still says here that the coming few to several months could be volatile, or downright painful before secular trends reassert. With the Dollar this close to major support @ 80, rates either need to rise further or we're off to Bananaville. Also, Johnny Yen is about burnt to a crisp by now. Manage risk.