Monday, November 10, 2008

It will take time

I posted the above chart and a discussion about the trend continuation theme on recently. My theory is that the recent wipeout in the HUI index is part of a wave II correction in a secular bull market progression. If this is true then I think we should be prepared for this to take some time for the bottom to form. We do need to see strength in the price action however. I would view a move above the breakdown pivot near 253 as a first step in the bottom formation. Eventually I expect to see some type of double bottom or similar chart setup. It will take many weeks for it to form.
S.M. Himes

Gold Seasonality

Gold Seasonality
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