Gold, Silver, HUI – September 6, 2011

Gold has made a small new high in the futures market

It has been strong and resilient and that is what bulls should be. Nothing has changed in my longer term view based on the current count and the low of Major 4 around 1480.

Shorter term, I said that gold needed a move below 1770 for shorts to get traction. That did not happen and gold embarked on a climb to meet and better the prior high.

For any trading position initiated at or below the small break out I have marked with a green arrow, partial or full stops may be lifted to a break of the short-term purple trend line. If I wanted to give a portion leeway, I would set stop for that porotion below 1810, but that may be too much of a drop for a short-term trade initiated north of 1800 with the intention of a fast hit.

Again, this is not about core reduction or longer-term stops for me and is just about any new trades

This is silver

I have been saying that silver above 37 might mean that PM area is OK. I first said that when silver was around 39. Any short-term trade from 39 area may lift stop (at least partial) to below 42

What I am interested to watch when regular market activity resumes, is how miners behave. I have already showed the range on GDX and the sideways range on its weekly chart. Let’s look at HUI

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