Thomas
DeChastelain
Memorial Archives

Bullion Charts and Commentary
posted Dec 19, 2004 at 12:11PM

Bullion Daily



HUI Daily



HUI Weekly



HUI/Gold Ratio



USD Daily



Trading Thoughts

I wish I had some great insight to share on the future direction of the gold sector but the blunt truth is that I really don't know what is going to happen.

From a personal trading point I remain 100% cash in regards to the gold sector since Nov 18. The sector remains in short term sell mode. Indeed the weekly MACD on the HUI is threatening to put in an intermediate term sell signal.

The HUI/Gold Ratio remains under the 200dma.

Price wise the HUI and gold all remain above trend-line support.

From a trading point of view I believe it is still too early to put on a contrarian's hat. I would rather wait for certain indicators to get back into bullish alignment before reentering. At the least I would like to see bullion get past 443, which has turned into a key resistance line.

Buying strength, to me, is still safer than trying to bottom-pick.

Good Trading

Bullet Bullet Bullet