Hi DAK,
The dollar move from 102 to 95, when inverted and priced in gold, takes gold from 320 to 345. If you throw on a multiple of (4 x %rise in POG) for the gold stocks, that takes the HUI from 120 to 155.
So, here we are at that magic HUI = 155 again. I consider that the minimum move from here over the next few months. There will likely be some speculative run-up above that level (still think 180 is in the cards).
After we see 95 on the dollar, I suspect we'll see a big rebound in the general market, a rebound in the dollar, and a drop in POG and HUI. I'm thinking 50% retracement of the moves: POG (350-250)/2 = 300, HUI (180-40)/2 = 110, $ (121-95)/2 = 108, DJIA (11800-6200)/2 = 9000.
That's my roadmap, anyway.
HUI, from 40 to 180 ... not a bad first wave for the bull market on the way to 300+. Dollar will be looking dead when it reaches 65, however.
Regards,
crusty |
