Mmmmmmmmmm….. Deeee-licious!

Looks like our friend “Baby $HUI” — the Amex Gold Bugs Index is just about to pull back to our second line of resistance that I’d plotted out some week and a half back.   If you recall, the chart looked like this:

In the above, we’d hit that magic $400 barrier and come back already to our first point of resistance.  Well, as of late last week, we’ve come very close to that second line and will likely hit it sometime today (Update: We’ve hit it and then some at $341– next stop could be our 13 week MA at $337.30).   Therefore, I think we need to keep our eyes open for a bounce here at least back to that first resistance level at $375.    Here’s where we are today:

Because of the relative strength of this sector, I think it will continue to lead, and show it’s bull head before the rest of the market does (if in fact the rest of the market continues with its bullish ways).   Short synopsis, this is your only confirmed bull in the market right now, with most names riding above their 200-day MA’s.   Therefore, this is where you want to play for fun and profit, no matter with what specie you purchase your ice cream cones.

There are a couple of POS miners that have yet to truly participate in this rally, and that may be because they are POS, so take this next chart with a kiloton of salt.   It’s the old dog, [[CDE]], which has dropped back down to attractive levels again, and is down over 5% as I type this.  Keep a tight stop here, but I continue to think this old hag still has a chance to come close to her 200 day MA at close to $30 here.  Here’s her weekly:

One last note — be cautioned as [[UUP]] is back above it’s 61.8% fibonacci line of $24.06 as of about 9:40 am this morning, which could spell at least temporary trouble for the markets in general.   In the case of this PM bull, I believe it smells of  opportunity.  Best to you all.

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Update:  Barron’s weekend pick  and Jakepick (non-Jacksonian) [[NG]] showing her mettle, up almost 8% in a down market.  I own shares, but will likely add to weaker names.  [[RBY]] in particular looks good here.  Word on the PPT is that it’s a possible [[GG]] takeover.

Update: @ 1:57 pm, $HUI is right on the trendline right now at 334, give or take.   If UUP folds over, this could be an excellent purchasing opportunity.  Keep a gimlet eye!

Update:  Bot 1k more [[AGQ]] @ $44.01.

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