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Strategies & Market Trends : Natural Resource Stocks -- Ignore unavailable to you. Want to Upgrade?

To: jimsioi who wrote (20818)	2/3/2005 3:08:29 PM
From: Nihontochicken	Read Replies (1) \| Respond to of 108726

Well, the BB squeeze on the HUI broke downwards today: smcurl.com Some Gold gurus say that this is a headfake, that the HUI will reverse in one to three days for a major move up. I'm not convinced. My cursory review of the HUI indicates that it does NOT tend to headfake; that is, when the BBs start to diverge after a squeeze, the BB that the price first heads to is the one it sticks to (in this case, down). Perhaps someone with charting services better than my freebie site might want to check this out. Looks to me like HUI 190 or so is in the making. I hope I'm wrong, still holding long. This figure is the approx. lower rail of the four year uptrend channel (depending on how you chart it). Of course, each time you visit this lower rail, you have to ask yourself, is the bull dead? Either it breaks back up (no), or continues on down (yes). Sooner or later the bull WILL die and dive through the lower rail. Is this the time? Also, if the PTB/PPT/Cabal/Whatever has the insidious intent and financial horsepower to significantly sway the POG and even the miners, then you would anticipate, if they expect the gold bull to continue, to artificially depress the price just as the uptrend channel lower rail is hit, in order to fool the goldbugs into believing the bull is dead and trigger capitulation selling in order that the PTB may liquidate their shorts and switch long. I dunno, am agnostic on this consideration, but if it is true, then it should result in a temporary break BELOW the lower uptrend line. Anyway, this is the make-or-break decision time. Is the bull about to charge again, or roll over dead? Ya pays yer money and takes yer choice! I'm holding long (for now!). NC