Are We There Yet?

The HUI Index of gold mining stocks, despite today's rally remains in a well established downtrend.

A downtrend is defined as a series of LOWER LOWS and LOWER HIGHS.

Personally, I can not see any reason to be long the mining shares at this point, but that is just me.

Last week, I posted that gold was moving sideways along SUPPORT. That SUPPORT broke down after the FED MEETING and the raising of the short term interest rates. Gold hit a new LOW in the DOWNTREND and has bounced back to former support . . . .

RESISTANCE!

Gold remains in a well established downtrend.

Silver is slightly different in as much as silver keeps churning sideways. Trading sideways markets just chews anyone up are for me are best to be avoided.

source: JM Bullion

The premium on American Silver Eagles remains very high compared to the COMEX at roughly $16 per ounce.

The answer to the question of whether we are there yet is simply no, not yet.

A rally in precious metals in the Fall is a very rare thing, not an unheard of thing but rare nonetheless.

In a typical year gold and silver tend to bottom in early December but we are not living in typical times.

Peace Out and Stack On!