The Big Picture – HUI Mining Index
The HUI mining index is in a bull market. Traders are making the mistake of stopping out at corrections, such as we are having now. I expect that in 12-24 months the HUI mining index will retest its all-time highs.
Chart of the Day – Miners
This is how it always is during corrections in a bull market. Traders get lost in the short term gyrations and forget to look at the big picture. Everyone is panicking like something significant is happening. There is nothing broken about this chart. Price is holding well above the rising 200 DMA and the bear market trend line is clearly broken. Price is making higher intermediate highs. This is a bull market. In bull markets corrections end and price goes on to make higher highs, and more higher highs, and then even more higher highs. Within 12-18 months I predict the HUI will be testing the all-time highs.