Retest, False Break or On the Edge of Glory?

The blue line is the "break out" line for the gold mining stocks. In the past week, the HUI Index of "unhedged miners", dropped down to retest the breakout, bounced off of this line, confirming that what was once resistance is now support.

Of concern is that today, the HUI posted a slightly down bar on the same day that gold and silver both posted a very positive day.

Could be nothing or it could be something. How is that for a very definitive, yes, maybe, possibly of no way answer?

Of course, the answer is always "yes" as it always depends upon whether you are trading or investing.

Do you really trust that your brokerage firm is actually procuring your shares?

Remember that we live in very interesting times, when what was done in the dark shall be shown in the light.

Speaking of light, bright and shiny things, GOLD also retested the breakout and has thus far bounced off of its breakout. So far so good, but we are in the early stages of an uptrend when all things are still possible even a bearish reversal. If gold takes out the previous HIGH then look for another run to the upside. If however, gold takes out the prior LOW then things get real complicated.

Silver, my personal favorite, looks ready to run.

If silver takes out the prior HIGH of $23.69 then we could see some nice upside movement.

source: JM Bullion

JM Bullion is having a sale on American Silver Eagles, with a premium of only $15 and some change above COMEX Futures. Now that has come down slightly but for context the premium is still almost twice the amount as in times past.

So there you have it!

Peace Out and Stack On!