Gold Sector Charts
posted May 8, 2004 at 11:32PM
If general equities hold in there then golds must surely be nearing a point where a tradable bottom is coming? If the general markets start swooning then Precious Metal stocks will likely be carried along for the ride, especially if the USD is rising. Crashes are rare events. Too many gold longs are anticipating a crash in general equities, and somehow disregarding that the golds may be giving the message NO ONE wants to hear.
Indeed if the HUI and Nasdaq charts were exchanged, there would be no shortage of commentators talking about how the markets were crashing...and they would be right.
Personally I would not get married to any long positions as my reading of the tea leaves says that better bargains will be available later in the year.
Note: I will be away during the next week or so and the site will not be updated during that time.