A few subscribers who had few or no gold stock positions mailed me during the HUI's furious leg up to the thick zone of resistance at 375-400, describing their frustration (in some very humorous terms, I might add) and seeking reinforcement of my usual 'don't chase' message. With Huey pounding 400, they got it.NFTRH had been warning that weekly resistance was very likely to repel the advance, so I will admit to you that I am happy with the proceedings, as HUI has now pulled back to the preferred target around the daily SMA 50. I have very slowly begun the process of adding back gold stock positions on this pull back.
Whether or not this is the bottom (NFTRH will watch the nature of correction and any relief rallies very closely week to week) we can state without a doubt that people wanting to buy gold stocks will be much more successful over the long haul when they buy corrections like this than euphoric rises like the one in May.
You cannot control the markets, but you can control your emotions and have discipline. I would imagine the gentleman who was running out table legs to chew off and the gentleman who felt like he was being mentally water boarded watching the miners blast off without them are feeling a whole lot better now.
Anyway, check out the chart. I'll leave the analysis a bit cryptic, as we'll let NFTRH do the heavy micromanagement going forward.
