SIL is in an H&S topping pattern, and below the neckline. This chart and its target actually causes me concern as a gold stock holder because silver bugs and gold bugs tend to be all tied up in a giant clusterfuck of monetary ideology.
As for the gold stocks, GDX in the lower panel made a higher high in August, so it ain't a H&S. If the plan goes as expected and gold leads the entire mess into a bottoming and upturn from what we'll call Oncoming Capitulation '11, one might envision GDX holding the 50 to 52 area (equiv. HUI 485 to 500) while SIL tanks and broad markets and commodities put the final SPOOK into everybody.
Of course I could be wrong and this is the end my only friend... all done and we go full physical, cash, guns, ammo and provisions; i.e. full tin foil. But scenario 'a' is much more fun. We'll stick w/ that for now. These are the markets and you have got to love them.
Hey look, you try writing a blog day after day, month after month, year after year and see if some of your posts do not veer, ramble and go skidding off the track.
http://www.biiwii.blogspot.com
http://www.biiwii.com
You don't have to apologize, you're in good company.
ReplyDeleteThe eccentric people are the ones you want to trust with your money, because the whole system is eccentric.
To be fair, GDXJ has already completed a head and shoulders pattern as well that projects into the low 20s. GLDX - well it just looks crappy.
ReplyDeleteCan't wait to buy Gold miners at the end of the month. Salivating at the thought, actually...
Yeh, I feel that way too Patrick. ;-)
ReplyDeleteAdam, I saw the look of the GDXJ as well. This fund holds too many silver stocks (and some downright crappy gold stocks) for my liking. It projects to around 20 or so.