“Woe to the land whose king is a child and whose leaders are already drunk in the morning. Happy the land whose king is a nobleman, and whose leaders work hard before they feast and drink, and then only to strengthen themselves for the tasks ahead”. (Eccl 10: 16-17)


"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat


In every stage of these Oppressions We have Petitioned for Redress in the most humble terms: Our repeated Petitions have been answered only by repeated injury. A Prince whose character is thus marked by every act which may define a Tyrant, is unfit to be the ruler of a free people. Source – The Declaration of Independence

Thursday, January 26, 2012

HUI higher but showing signs of selling pressure coming back in

Take a look at the following chart and you will see what I am referring to. The mining shares gapped up today on the opening trying to catch up a bit with the overnight surge in gold and in silver but after that, most of them went nowhere. That is not a bullish sign for continuing their move higher. They did attract some dip buying later in the session but the shares are reflecting a lack of confidence that the rally in the metals is going to continue tomorrow. We will see whether or not they are prescient.

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2 comments:

  1. Thanks for your wonderful charts Dan! Just curious what your thoughts are on Natural Gas. Thanks again for your hard work!

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  2. "Gap higher but then faded"

    Maybe, but we could optimistically say that it dipped to test former resistance which might now become support...! Just a thought...

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