Are you ready for this, Tom?
Probably, gold stocks will still be temporarily susceptible to stock market declines. I wouldn't even rule out gold stocks declining in the face of a gold rise, IF the general markets are sinking. However, I'm beginning to wonder if the fiat printing party is raising the normal levels for retracements.
The inflation we are seeing might be rendering standard TA useless, when performed in terms of fiat. I've come to the conclusion in the past few weeks that the day is coming soon, or is here now, when we are going to have to evaluate all charts in terms of gold rather than dollars or yen or whatever. That goes for individual stocks as well as indicies. What does that mean for the HUI?:
stockcharts.com[w,a]dalayyay[df][pf][vc60]&pref=G
One e-wave count here might be: 1 in May-01, 2 in Nov-01, 3 in Jun-02, 4 in Jul-03, and presently it may still be early in 5 (just finished 2?). With this count, a reading of .9 before year-end is possible for 5, and if gold is around $450 that gives the HUI around 400. I hear the laughter, but that's one way to read it.
Regards,
crusty |
