A few days ago I added a $GOLD – $HUI chart comparing the Gold price with the Gold BUGS Index (Basket of Unhedged Gold Stocks). Going through several hundreds of charts I still can’t find anything compelling about the markets that would induce me to aggressively go long at this juncture. Even gold and the gold stocks don’t offer lots of patterns I want to buy right now. Apart from the occasional few exceptions I simply can’t find stuff that is ready to break out offering decent pattern pressure.
Up-to-date Big format $GOLD – $ HUI Chart on my Public List.
Up-to-date Small format $GOLD – $ HUI Chart on my Public List.
This is a classical non-confirmation. Gold miners as a whole are lagging. I don’t view this as an opportunity or a ‘bargain’ as a few people out there opine. Quite the opposite is true. Technically speaking this is a warning sign. This is not the time to be aggressive. I don’t like what I see, that’s why I keep being cautious.
When in doubt stay out.
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