-->Comments on HUI action

Found this on another board FWIW!

HUI notes from goldseek...

The HUI is getting ever closer to the 225 area target we have been watching, which happens to be a support level, near the lower uptrend line as well as just above the 50 DMA. As we have sold over a week ago our short-term holdings, we feel it is getting close to purchase in again on this weakness.

Some notes: Gold is still staying strong in face of this weaker dollar, despite intervention by the Japanese BOJ. One Reuters report had overnight free-market manipulation at $5 billion (http://biz.yahoo.com/rb/031210/markets_forex_7.html) - BOJ prints Yen to devalue their currency to buy dollars then use those dollars to buy Treasuries. With another BOJ intervention at the 107 Yen level, this current anti-free market move weakened the Yen to 108+ vs. the U.S. $ (http://quote.goldseek.com/dollar.php). From past experiences, such moves do not last very long. Gold still looks poised to run up for the $417-425 area still and suspect this current share sell-off is related to profit taking and a shake out of longs (the Barrons' article over the weekend only adds to today's selling). Thus, another opportunity to play the short-term side of this channel uptrend appears attractive. With U.S. equity markets still strong, yet vulnerable, gold shares still look okay for the next few+ weeks as history dictates that gold
shares peak weeks after U.S. markets make a significant peak. With the Dow touching 10,000+ yesterday, this would mean a run-up of gold to $420 area would allow precious metal shares to still participate in this leg up.



Overview: We HAVE been selling into this gold rally towards $420 into the core position but at this time, feel safe to repurchase a small amount of a short-term position as we see the HUI retreat towards the 225 area buy target looks attractive. With the HUI trading just under 230 at the moment, it is hard to predict if this is the short-term bottom or if in the days ahead, we get another round of selling hitting the 225 area, possibly occurring into next week.

PS:
Also keine Verachtung ; vielmehr Betrachtung!