NEW 52 Week Highs in Goldstocks...WHODAHTUNKIT !?!?!
...returning to the "Leadership" Theme:
GG - Goldcorp is now THE leading indicator amongst HUI Goldstocks. Yesterday at the open it broke thru to a new 52 Week High, but closed below that high.
AUY - Yamana ...the leader amongst Junior/Explorers did close yesterday at a New 52 Week High.
RGLD - Royal Gold the royalty play fav' and sadly a business model rareity for those former Franco Nevada followers, is now within pennies of a New 52 Week High....not cheap, but it's performance here speaks volumes.
GOLD - Randgold the company, not 'gold' the metal... is also near breaking to a New 52 Week High...and is a new leadership stock.
All of those companies for very valid fundamental reasons have become the NEW indicators for the true "state" of the gold stock sector.
The HUI Index is NOT a gold pureplay... not even close.
In this environment of supression & intervention - IT IS NOW IRRELEVANT.
Monitoring the correct mix & basket of goldstocks paints quite a different 'technical' picture than does following/monitoring the old-school HUI, or XAU indices.
That the HUI is no longer a valid, or pureplay gold index should be redundant at this point, but it is not it's irrelevancy that is the major point, it is the supression of the index in relation to it's 200 dma that is technically keeping a significant portion of gold-sector cash & Gold Pundits on the sidelines.
Technically speaking:
GGI=GGO = gold garbage in = gold garbage out.
It is no surprise that many leading Gold Newsletters (per Hulbert & Hathaway's recent comments) are still bearish, or neutral...having been 'all in' - all the way down...and now bearish, or neutral, after just having missed a tremendous trading opp that has seen the "irrelevant" HUI Index just "V" rally 40 points with the "relevant" new Emerging Leadership amongst individual goldstocks, now knocking on the door of New 52 Week Highs... an achievement that has gone un-noticed and un-reported amongst the Old-School Gold Punditry...
- whodathunkit !?!?!
Going back to the ongoing hubris of the "gaming" of Gold that most recently occured at the open on Friday July 1st... a very "tradeable" technical pattern has developed for Bullion & the Metals. I'm working on that with a group of other traders - it astounds me that no one has written a piece on this on Kitco, Gold-Eagle, or in any of the well known Gold Newsletters.
Not to be rude, but only to be direct... the Gold Pundit World is filled with 2 'Old-School' extremes... the nut-ball conspiracists who have been predicting $8000 POG 24 x 7 for the last decade, or those Pumping the obscure Exploration Plays. There is a huge gap in coverage on the individual HUI components, non-North American Emerging Producers & Explorers and most importantly - the "New School" emerging leadership in the gold stock sector.
- that will soon change ! (more on that later).
If you weren't blinded by the old-school technicals, or the irrelevancy of the HUI itself....tremendous profits have been made into the bottom formation we've just seen in April & May and the now 40 Point HUI Index Move, along with new highs in stocks like Goldcorp & Yamana et al.
The "New Technicals" for trading Gold & Gold stocks have now performed accurately enough, for long enough, that "Old School" is about to become "No-School"...
...neither sitting on the sidelines waiting for HUI 120, or 150;, or trading in & out 36 times in the last 21 days, going from short-term, to longterm & back again (!?!?!?)...all within a 10 point tightening HUI 195-205 Trading Band - has quite obviously not been effective - regardless of the nattering of the naybobs, the lost, the mislead, the MIA & the BS'rs.
The first prerequisite for profitably emerging at the sun-lit end of a dark tunnel is to know that you're in a tunnel in the first place. The 2nd is to 'open your eye's' and realize the tunnel is dark. The 3rd is to be facing & moving in the right direction when the 'light' appears...
Lot's of the "Blind leading the Blind" in Gold-dom of late...
Mo-Later`
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