Has Anything Changed in the Precious Metals Markets?????

So where did we last leave off?

Oh yes, in case you have forgotten, silver, gold and the Mining Shares have been in a well defined DOWNTREND. A downtrend punctuated by a series of LOWER HIGHS and LOWER LOWS.

The HUI INDEX of unhedged gold mining stocks has been drifting sideways around the 200 level. Last week I mentioned that if the July lows, around the 192 mark, are taken out then we can expect another leg down.

Nothing has changed as of yet BUT there is a small hope for the BULLS this week. On Monday, the HUI hit a LOW of 200.04 and has bounced upwards.

Now if that LOW of Monday holds we could finally have a HIGHER LOW in place. I should emphasize, that is a BIG IF. The second thing that must happen is the recent HIGHS of 215.93 needs to be taken out in a powerful up move.

So there you have, for the first time in a long wile a "BULLISH" scenario developing.

All the BULLS need to do is make sure Monday's LOW holds and then knock the ball out of the park over 215.93.

Okay, so there are many "ifs" to change the downtrend, and the chances of this happening are slim, as a trend is your friend! And that trend as of now remains DOWN!

The same pattern has formed in the futures gold market for gold. But until the BULLS show up, the trend is still down.

Silver is the weakest of the metal markets. It is just plain ugly BUT last month's lows have yet to be broken and if the miners and gold are able to rally then silver usually tags along for the ride.

You can do what you want to do, it's your money. However, the downtrend remains intact and I have only laid out a POTENTIAL BULLISH SCENARIO. And by potential, I mean it is pure conjecture. Just as easily the BEARS could grab hold, knock the July LOWS out and then another
leg to the downside begins.

This is a game of patience! Live and Learn.

Peace Out and Stack On!