This is one of the producers I took partial profits in last week but with the 'hold' shares I have been dunked but good. I am considering adding back the traded shares of AUY, but there are several other opportunities shaping up as well. Here is the daily chart of AUY that I reviewed this morning. Yes, a dreaded H&S type formation with neck line being challenged. Indicators are getting over sold but there is room for momo led downside. The key, as I have tried to illustrate on the chart, is securing a real bottom as opposed to a 'falling knife' or false bottom. I will be selective here given that I have core shares of AUY already and there are other bargains showing up out there.
I am bearish oil beyond a near term bounce. It should be obvious I am BKX and US financial system bearish as well, despite the attempted socialist cleanup of the toxic mess. Therefore I am bullish gold. Can't be any other way. The oil hysteria is a negative issue short term but as gold continues to outperform crude, and as the financial rot overpowers officials' attempts to sweep it under the rug, the gold miners will benefit. Meanwhile, attempting to pick the exact bottom is difficult. Different stocks will bottom at different times. That is why my bottom feeder MO is to buy all in and around these reactions. Weekly HUI chart included for reference now that the daily has broken down.
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