"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

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput

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Tuesday, February 28, 2012

HUI still stuck below resistance

Gold and silver mining shares are moving higher today, especially silver shares, but the HUI is still lagging from a technical analysis perspective. It just cannot seem to clear this stubborn level near the 555-560 region.

If you note on the chart, this band of horizontal resistance also corresponds exactly with the downside gap that opened up in early December of last year. This gap is currently serving as a barrier for further upside progress.

We will have to watch to see whether bulls in mining shares are feeling confident enough to try to mark these things up agains the hedge fund ratio spread traders. One would have expected a better performance in these seriously undervalued shares especially with silver's sharp rally through resistance at $35.50 and gold's ability to remain above $1780. So far, nothing doing.

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