Here is the weekly price chart of the HUI. It did not end the week on an encouraging note, with the close being the lowest since the week of January 27 this year. As such, it is in serious danger of falling further and testing the support zone noted on the chart beneath it.
For the bulls to be able to have the least chance at mounting something to the upside, the downsloping trendline will need to be breached. That could form the basis of an actual reverse head and shoulders pattern but the big downside gap that formed last year in April near 300 would have to be closed for any serious upside fireworks to occur.
The pattern of lower highs since that month is suggesting that a "Sell the Rally" mentality currently exists in the mining sector. Downside support is also suggesting value-based buying is taking place but the question is whether or not these buyers have sufficient clout to ward off opportunistic sellers. The index is range trading with bears having a minor advantage for the time being.
With the ETF, GLD, losing gold, and with this continued weakness in the mining shares, the signals are not promising for the moment. Time will make things a bit clearer but for now, this sector has fallen out of favor with investors.
For an escape last evening I took the kids to see the movie, "Godzilla". As a kid growing up watching the monster both terrorizing and saving Tokyo, I was hoping for a trip down memory lane. I was not disappointed.
The entire movie, which had a decent script and some great cinematography, was actually pretty good. Unlike that disaster of a film in 1998, this one was true to the original roots. Godzilla both looks and SOUNDS a lot like the original. As a matter of fact, his roar, which he cuts loose with as he makes his grand appearance onto the big screen, sent the entire theater shaking. " I have arrived and am here to kick some serious ass" is the message! And trust me, THIS Godzilla, can kick some ass!
Watching these enormous monsters duking it out and laying waste to Honolulu, Las Vegas and San Francisco in the process was terrific. The battle scene between the US military and Godzilla at the bridge was a classic! Puny humans, you have met your match!
Wait until Godzilla cuts loose with his radiation blast/dragon-fire. Every detail including the way in which his Stegosaurus-like scales begin first glowing, is true to his roots in those early movies.
If you want to relive your lost youth or to merely introduce your kids to some of the things that we had the joys of experiencing in our early days, before there was an Xbox, Playstation or Nintendo Wii, go and see Godzilla.
I left the theater feeling like I was 10 years old once more. Hat's off to the folks who made this movie. It was a lot of fun. Besides, where else can you cheer out loud for Godzilla and get away with acting like an idiot and publicly embarrassing your own children? That is worth the price of the admission alone!
