[HUI] update

Back in this post I correctly foresaw a a growing chance of H+S breakdown on HUI.  Not only did the breakdown occur, it bottomed very close to the target stick as shown by the red vertical in the HUI 120 minute chart below.




So now the question is, are we done yet?  Is the ass kicking being done to miners over?  Of course, nobody really knows for sure.  What we do know is true is that we are a Hell of a lot closer to the bottom than to the top and I repeat my view that everyone who is not a trader will do well to just keep cost averaging into something golden.  The big bounce is coming with gold to $1300-$1400+ and it is going to move share prices of beaten up gold miners upward in a big way.

Nearer term, the herd has left itself options in the form of either red or blue, both of which are set up for a potential gap on Monday.  I count the move from July 24 until Aug 13th as a 5-3-5 a-b-c.  Note that save for 1 thin line in blue A, this could be as easily counted as 3-4-5 down into Aug 6th with everything from then being 1-2 and then pop into wave 3 up on Monday.  Pretty much whichever way it gaps is going to be an important indicator of direction.  I bought a 1/2 position of JDST at the close out of respect for Avi's model but I would sell it quickly and flip long on Monday if this gaps up.  I could see the market treating this as cup with handle.