Loading ...Foundation of quicksand…
Don’t get me wrong, I am happy the metals are up as I am fully long, but this rally is built on quicksand. Another ugly candle yesterday on the HUI and yet another gap up today (probably to get filled at some point down the road). Not only that but you have serious cloud resistance around the 312 level on the daily chart for basically all of February. We are going to need an absolutely explosive rally to get through that level in the next month. You can see why the slam down a couple of weeks ago was so damaging for near term prospects on the below chart.
Not saying it can’t rally from here and never look back (anything is possible in this crazy sector), but well, color me extremely skeptical. I think we will be right back down to today’s level at some point.
“THE BEATINGS WILL CONTINUE UNTIL MORALE IMPROVES.”
TPTB to the gold and silver bugs who like to think they can game the system. If the past year has not finally woken us up to the fact the the “house never loses”, nothing will. They have us all painted into corners. My only solution at this point is to become a grey man and fade into some obscure corner of this realm, live a quiet life and detach from Babylon
Nice corrective bounce today
Although — what if today’s move is real?
Will only know in hindsight. But strong odds are the $hui closes below yesterday’s low in the coming weeks and maybe even a month or two from now.