HUI holds at the last level of Chart Support

The barrage of selling that whalloped the mining sector seemed to have finally abated here at week's end. No doubt some of this was tied to shorts covering some very profitable positions. Additionally the rebound in the S&P 500 took the sector higher with it. I would think that some value based buyers were also at work here.

Regardless, the index bounced at the very last level of chart support shown. Additionally, the spike low in today's session went right back to the former downtrending line noted that was breached back in early September, a breach that I might add took the index sharply higher.

Oftentimes one will see a market that has broken out to the upside, run back lower and retest the broken downtrend line, touch it, then bounce back off of it giving evidence that the sellers have met up with sufficient buying to stymie any further downward move. That can be the end of the selling. We will see if that is indeed the case next week.

To give the bulls some breathing room, I would like to see this index move back past the 457-460 level for a bare minimum.  A stronger confirmation would be a move back above 475.

Word came late in the session today that some supposed progress was within reach of some sort of compromise to deal with the upcoming fiscal cliff issue here in the US. I am not so confident that anything that emerges will have the least bit of impact on the problem but then again investors were perhaps looking for some reason to book profits on winning short positions in the equity markets ahead of the weekend.

Gold Supported by Rockets in Israel

Gold continues to hold above support (see the earlier post from yesterday) as rockets flying in Israel and explosions are not something that even the most stalwart gold bear wants to deal with, especially over a long weekend during which anything could happen.

If we come into trading in Asia on Sunday evening here, and we have a further escalation over in the mid-East, gold will continue to attract buying. If we see tensions fade, then gold will likely move lower.

The mining shares appear to have finally attracted some decent buying after being beaten to a bloody pulp for most of this week.

The divergence between the shares and the price of the metal continues however so perhaps we will see a closing of the gap with the shares moving higher and gold either holding stable or drifting somewhat lower.

It is difficult to say which right now but the gap will be closed.

Do You Want to Stop Obamacare in your State?

Those of you who are opposed to this abomination and wish to prevent the destruction of what is left of our Republic, please read the following article. If you are fortunate enough to live in a red state, there is still a chance to see the states stop this thing dead in its tracks.

Please, please, pick up the phone and call your Governor's office and urge them to say NO to setting up the state run exchange. If the states refuse to implement this thing, it will wither and die on the vine.

This is how the States are able to stand on the Tenth Amendment and refuse to comply with a power grab by Leviathan on the Potomac.

http://www.redstate.com/2012/11/16/will-gop-governors-save-us-from-obamacare/

We all understand that elections have consequences and that there are certain issues which are ceded with an electoral loss.  Obamacare is not one of them.
If Obamacare is allowed to survive, then our Constitution has no meaning and our Republic is finished.  It will engender a takeover of 1/6 of our economy, create permanent dependency, induce unsustainable inflationary pressure on the cost of healthcare and health insurance, and saddle the next generation with crippling debt.  Every intervention, program, and mandate prescribed under the 2010 healthcare law, if left intact, will limit freedom, increase insurance premiums, create more dependency, and lead to rationed care.

Quote of the Day

"Society in every state is a blessing, but government, even in its best state, is but a necessary evil; in its worst state an intolerable one." --Thomas Paine

Rancher/Farmers - Further Casualities in the War Being Waged by the Left

Take a good, hard look at the following article and note particularly way down in the 10th paragraph:


Many Democrats argue the tax promotes equality among classes,
Read more: http://www.foxnews.com/politics/2012/11/16/ranchers-farmers-brace-for-death-tax-impact/#ixzz2CP5PO11S

If you will recall that article I wrote last week after the election, I mentioned that the left in this country takes as its motto the rallying cry of the French Revolution, "Liberty, EQUALITY, Fraternity".

They will not rest until they have reduced every citizen in this nation to the same level of misery and ruin that their policies are already producing in the land. That is their idea of Equality - an EQUALITY of IMPOVERISHMENT AND MISERY.

The vision of the Founding Fathers, and that which made our nation the most powerful, richest and most free nation ever seen, was an EQUALITY OF OPPORTUNITY. Where else but in America could a person of common means, with dogged grit and determination, running on his or her dreams, combined with hard work and sacrifice, reach greatness and levels of success beyond even their own wildest imagination?

That will be coming to an end in this land if the left is not stopped in their religious quest to equalize all.

I count among some of my friends, both ranchers and farmers who toil long, long hours through all kinds of weather and through all kinds of challenges to work their land and produce our food. Do you think that those leeches on the left, sucking the blood out of their weakening hosts, could give a rat's ass about what they are doing to the average farmer or rancher as a result of their Ahab-like pursuit of an imaginary earthly paradise? Of course not!

Just one more reason for an amicable divorce. Leave them half the nation and let them suck all the blood out of that until there is none left. Then maybe, just maybe, the fools will learn something, but I doubt it.