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The HUI indexed precious metal stocks, which have been one of the most fantastic means of garnering wealth since 2001 fell today, while physical gold moved higher. This is not a bullish chart: the HUI relative to Gold have fallen of the edge of the edge of a massive head and shoulders pattern; this suggests a sell.
CDE,
is a component of the HUI shares; it manifested bearish engulfing today;
this does not bode well for the HUI. The HUI indexed precious metal mining shares have been a tremendous vehicle for garnering and accumulating wealth: their days of doing so are over.
The final
consideration here is that the HUI and the U.S. Treasuries decisively
turn together at market pivot points.
Here is the same chart weekly: this shows an extinguishment of gold stock wealth: one does not want to stay invested in gold stocks at this time; one wants to trade out for the real thing.
$HUI
turned 1% lower today as
$USB was up, but only by 0.03% and manifested the bearish lollipop hanging man candlestick indicating a market turn.
I believe we have reached a market pivot point where futures-gold and futures-bonds are decisively turning lower, providing a strong sell signal.
Gold
stocks are detaching from the price of gold.
Yahoo finance shows gold outperforming the gold stocks.
Investment
application Specifically, I recommend that one transfer all of one's retirement wealth into the gold ETFs: GLD or IAU; and that one obtain margin credit to short sell as indicated below. In as much as the U.S. Dollar, $USD, is falling, I recommend that one not have any dollar denominated assets -- ETFs, mutual funds, stocks or bonds of any type: I recommend that one transfer one's other financial wealth to BullionVault.com.
Short
selling recommended I
recommend that one buy the 200% inverse of the precious metal mining
shares
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The opinions of FSU contributors do not necessarily reflect those of Financial Sense. |
