Gary Tanashian | Mar 28, 2013 08:37AM ET
In an index I used last summer to help stay on the bull path .
Another thought with respect to the gold stocks… I am glad that they are disconnecting from the broad US market. If HUI were to find support here, they could be on their way higher if the regular markets simply grind it out for many months. Alternatively, if the HUI crashes to the worst implications of the big topping pattern from 2009 to 2012 (it measures to 100), then you might extrapolate forward and wave bye bye USA a couple of years down the road.
Hey, why so gloomy? It’s just a gold stock index. Well yes, but the road map looks uncannily good. Best that the gold stocks find support either here or at the next target of 250 and begin to point the way forward.
[edit] Postscript:
The gold stocks ended a secular bear and led the way out of the first broad US cyclical bear market early last decade. They were among the downside leaders into the 2008 crash and they absolutely launched ahead of everything else that would eventually recover into what we called ‘Hope 09′ back then. So the above corollary is more than a random jumble of charts with similarities. ‘Hope 09′ is now 4 years on and anyone buying the US stock market as a committed investor now is likely to find disappointment or worse going forward.
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