The latest move in PM miners has been substantial and on good volume. HUI led the breakout of Gold from a tight short term range. Now, after the fact, that may or may not litter has become the talk of town.
Talk is cheap in the market, so let’s focus on some industry composite charts and see what we can see for ourselves
At first glance the above chart looks very good. But the last time HUI components were this hot (May 2009), they sold off very fast and rather hard.
The above chart looks good and confirms the move so far. I would have liked to see a steeper slope to the uptrend of the A/D line. But volume’s been there, and volume, over time, is usually a sign of keeper moves.
The above chart leaves quite a bit to be desired. There is some nasty divergence on the chart at this moment. It indicates that, while breadth has been positive, as evidenced from the first two charts, the momentum of the breadth might have been waning. It is a bit too soon to jump to conclusions, but as I have mentioned for Gold and GG, it is now a question of how the group holds up after the initial run.We will have to cautiously wait and see
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