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Revisiting the Gold Bugs Index
From Slope of Hope......
Below is the broad view of index symbol $HUI, which shows how the analog has strengthened recently. The key, of course, is to break beneath that lower horizontal line. If we can do that, life gets interesting in a big hurry.
Looking closer, you can see the important event that happened on Monday: we broke that ascending trendline. On Tuesday, we gapped down, creating a nice window at 508.92
Looking closer still, you can see how much damage has been done since February 29th. We came dangerously close to crossing above 554.92, but mercifully we did not. The gold bugs index may seem odd and esoteric, but I am firmly confident that a failure of this index would be a crucial harbinger of a general plunge in equities.
As a final thought, here is the price chart.........without the prices. This just shows a standard trio of simple moving averages and points out where I believe we are relative to the prior analogous timeframe.
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forget about it... :)
No reason why dates couldn't be posted on the charts. Timhole is notoriously wrong on gold and miners, so it might be time to buy hand over fist.
Obviously written by an amateur, maybe he should superinmpose the price of gold, valuation of an ounce in the ground for HUI now comp to 2007, FCF at majors and margins. Maybe we will then get a proper picture...YAWN...
No. No damnit no. It's going to 700 this year. That's what all the people selling gold miner newsletters are telling me. Reported for being counter-revolutionary.
Lets just for the moment forget that this is the HUI. Does the first chart have any message regardless of time frame? It has risen from 150 to 650 and is currently tracing out what looks suspiciously like a big top formation. A confirmed break below 480, the December low (the low on the second chart), would not frankly look good would it?
OK now lets say we know it's the HUI, (in fact the man told us it was the HUI yet some folks dont seem to recognise the time frames so you have to wonder why they are trolling around on ZH) then being good ZHers we have to believe that 480 holds, the peak at 635 gets taken out and we are off to the races. But keep an eye on 480 just in case. If equities tank then gold shares nearly always get caned - just sayin....
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Bitchin Charts Bitchez....!
Bitch-ass-charts again!?!
Thats supposed to be one of those votey things bitchez.
Buy with tight stops. if your doing physical just average on in. It aint going to be this cheap for a long time.
God, what another worthless post by our chartist extraordinaire. How can I even respond to this drivel? Kim Tight is dying to relive 2008, so much so that he's resorted to throwing absolute crap on his charts.
Tim Knight and his obsession with miners.
zero on a scale of zero to fifty
This commentary is unreliable because Kim Tight bought miners back in August 2011 (at high of course). Not only did he buy them he said "Finally, a long I can love long time!" So, he not only bought the false breakout, he intended to hold it long time...lol. Please see here: http://slopeofhope.com/2011/09/miners-look-sensational.html
Next, this same Kim Tight sold his silver at $6 and bought it back at $42......WHAT!!?
He is an author of trading books, not a trader. On par with the university business professor that teaches, but has no real world value.
Tomorrow I will wake up and have myself a nice buying spree loaded with GDXJ, GDX, and junior miners. Hell......we just got our buy signal...our very own Tim Knight Indicator.
I agree and it's the same on all the charts, gold, GG, GDX, etc.
Great buying op ... in a month or ....
My potential dates are April 15th (natch) May 14th, June's too far out to tell.
Give?
And the bottom line in laymans terms is?
Buy gold stocks. Yes, they may get beaten up a bit in the impending market sell off (Tuesday truly was, as Josh Brown put it, just a firedrill), but good luck having the balls to buy them into what will be perceived as the start of another deflationary liquidation trade, when GDX will move down in 3% chunks, which is nothing compared to the 6-10% moves in GDXJ and names like GORO and GSS.
Think of idiots like this similar to guys whose college sweethearts cheated on them with (a) football player(s) two months before graduation. Unfortunate as it may be, the psychological trauma tends to turn them into paranoid little shits until/if they can get over it.
Once bitten, twice shy. With metals miners, twice bitten, flock to GLD...
Oh, and HIGHLY sell-side charting. You want to take recommendations from people applying mainstream charting techniques in mainstream ways, and do literally the exact opposite.
$0
It would be nice to see a time line of some sort so the charts could be put into perspective, is this a 10 year, 10 month, 10 week, or what? I haven't a clue. Am I missing something, or is something missing?
The point is in his opinion it's likely to plunge.
Why does it matter that the timeline isn't there?
Ditto, thought I was reading a chart I made back in grade school. Seriously who leaves out the x axis as if the rest of the data will even mean something. I can only guess that the large dip was 2008 but beyond that I am for a loss.