Sunday, February 01, 2009

The HUI Gold and Silver Stock index Is Looking Good

The Amex's HUI index of gold and silver companies looks like it is chomping at the bit to head higher.

(Open in new tab for a larger view)

From its final October low, it has made 4 more **higher** lows.
Plus, Thursday was an outside reversal day. Bullish.
It is hitting its head on about the 310 level currently for the fourth time.
Break out to the upside next week?

How the equal spacing tool looks on the HUI:

There is resistance right now at the 310 level. Later on it will be at the 360 level.


The new "manager" of the US economy has installed nothing but more of the good 'ol boyz for the management team, meaning the boyz got themselves another good little puppet like the last puppet (has the new puppet demonstrated the ability to run so much as a hot dog stand, or even a lemonade stand?), meaning it will be more of the same, more debt piling up, probably at a faster rate than before. More huge legislation authorizing even bigger spending (requiring huge debt creation to get the US dollars created to spend), without it being read by those who vote for it. More of the same is getting ugly.

Gold and silver in the hand is going to be critical for some people.

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