Bear with me a moment
Sometime after the miners bounced at the S/R line back in March I said in a comment that the miners would likely “Climb a wall of worry to their old highs, and then we’ll see.” Of course that can still happen. However, the action in the DXY today has awoken my inner bear, and I am looking for unexpected probabilities.
A deflationary impulse due to some black swam contagion can not be ruled out. Historical world Debt is now everywhere in the system, and too much debt is, of course, deflationary. Gold, Wise Old Owl Gold, could be the canary in the coal mine, so to speak. It has thus far refused to break out, and the miners continue to languish.
It’s far too early to hit the panic button, and personally I am not selling anything. Nevertheless I think one ought to at least consider the possibilities as shown below – a redrawn SHS neckline on the HUI. The GDM chart has a similar pattern. Anyway, I am probably wrong. At least, I hope so…
If that uptrend line goes it will be concerning
Thanks for a great look Foxy
>>If that uptrend line goes it will be concerning<<
Agree.