"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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HUI - deeply oversold and nearing support
The mining shares have been absolutely obliterated over the course of the last couple of months as their longsuffering owners can all too sadly attest.
The carnage however has dropped the index deeply into oversold territory on the weekly price chart. If you notice the chart carefully, this particular indicator which I have tweaked a bit to optimize it to the index, is now nearing levels seen only TWICE since the entire bull market began. Not only that, it is also nearing an important Fibonacci retracement level of the rally that began off the 2008 low before peaking last fall.
Between the extreme undervaluation against the price of bullion and the broader S&P 500, we should be nearing a turning point on this sector within the not too distant future. They have not yet flashed a buy signal but are getting close.
Thanks Dan. You rock
ReplyDeleteThe HUI is trading has been trading as a near mirror image to AAPL YTD. So i guess good news that AAPl is trading below 600 today
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