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Monthly Digger - May 2006


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I thought today was a good sign. Shares didnt drop, and in fact went up, when the metals declined. Its always signalled bottoms before.

 

If we're having an ABC decline, we should at least rally more first. Alternately, the decline could be over.

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First off, SMSC, thank you sir for the charts...They proved my suspicions. The conclusion. The $HUI:$GOLD ratio is in a box formation. I added to the rest of my positions this morning throwing "all in". I have a firm opinion on what is coming next, and I assure you, none of you have ever witnessed anything like it.

 

Changing countries in the morning, will see you at the next low when "that" feeling sets in, yet again...

 

 

Best Regards,

 

The CoinGuy

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stocks in general..like spx.. in a small range after weakness is not bullish

 

in SLV we just retested the May 24 low

......seems something is coming....dunno what.......but, we might push to the upside for a short time.......that was a nice rally in the major indicies to close out the day today.......and Japan is up this evening......$Nikk has lost 10%,

India 20%+, Europe has been whacked.....maybe a little bounce then we retest the May lows.......then again, a hard reversal down thru SPX 1245 might really surprise a lot of people right now.........

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  • 2 weeks later...

HUI and XAU:

 

In case you didn't watch the market all day long, like me--here's the daily one minute chart.

 

Morning blast off, mid-day doldrums, and a total McQueen by 3:30.

 

And then, mysteriously, in the last half hour the indices spiked-- accounting for all the daily gain.

 

I guess Adam Smith was right. There is an "invisible hand".

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