“Woe to the land whose king is a child and whose leaders are already drunk in the morning. Happy the land whose king is a nobleman, and whose leaders work hard before they feast and drink, and then only to strengthen themselves for the tasks ahead”. (Eccl 10: 16-17)


"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat


Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput






Monday, November 7, 2011

HUI continues its strong showing

Mining shares are getting a very strong bid in today's session taking the HUI up sharply through the 600 level, a psychological resistance level. As you can see on the chart, the index is moving ever closer to the top of the recent chart gap created last month when the shares were sold off during a downdraft in both the gold and silver bullion markets. I would expect the perma bears in the shares to try to make an effort to hold the index BELOW this resistance level. If they fail, I believe there will be enough momentum in the sector to mount a move back to the recent all time high.

Downside support is back at the bottom of the gap and is noted.



Note how the miners are continuing to outperform the broader equity markets today as they have done so over the last month.

Also note the much longer term monthly ratio chart I have constructed showing the performance of this sector against the broader US equity market over the last decade+.


6 comments:

  1. Trader Dan, I enjoy your commentary but your always so possum on giving even the slightest indication of what you like, why and your investment strategies. No one’s looking for magic 8 ball advice. But what you like as far as shares over the horizon etc. would be more of service than painting a basic fill the gap chart.

    Respectfully Jasper

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  2. Jasper,

    One, Trader Dan is not your investment advisor. Two, this site is free and no one is forcing you to come here. Three, Trader Dan your charts are terrific and extremely helpful, thank you for all your public service you are appreciated.

    -V

    ReplyDelete
  3. Jasper:

    I recommend buying the following company's shares:

    "Freeloaders Inc."
    "Do my thinking for me LLC"
    "Make me rich parterships"
    "Possum Stew for Free"

    Hopefully you will follow this "service" and become an all around success

    ReplyDelete
  4. Victory;

    thanks - much appreciated.

    DAn

    ReplyDelete
  5. hopefully we're looking at the much anticipated breakout in the mining stocks. been sitting on em for years and will do for a while to come. just really boring to see it chop around.

    ReplyDelete
  6. Wow, please don't translate your thoughts into my message. I guess the enjoy the commentary, respectfully, not looking for personal advise. Yet this gets translated into into a Jim Crammer rebuttal? I assume you write to educate, teach and share wisdom. Simply a student asking a question.

    I wouldn't ask if I didn't respect you.

    Jasper

    ReplyDelete