I asked the question. However, the XAU hasn't and it
is interesting that Mark Leibovit (Volume Reversal Survey)
who has been bullish on the gold stocks, is looking
at 72 on the XAU as a "re-entry" point. This level
would actually fill the gap in the XAU as well, and it
is entirely possible that we will see it filled.
The point made earlier about gold itself (e.g. Dec 99 comex)
was an interesting one: namely that gold trades throughout
the 24 hr period in Asia, Europe, etc., and that
the gaps in the Dec 99 gold chart may or not represent
"real" gaps.
You are right about Barrick, but it needs another
fraction of a point decline to just above $20, to completely
fill the "downside" gap. This suggests that we are
close to an intermediate bottom in gold and the major
producers. If (and I believe it ) you believe that
we are in a major new move in gold and gold stocks,
one should look at that as a buying opportunity. What
stocks you buy (or funds for that matter) is not that
obvious, but those companies that are not hedged at all
(Homestake, e.g.) would seem to have an advantage.
Regards
Dan |
