Swing Trading The HUI Index “Gold Bugs Index”, Russell 2000. Watching the Ending Diagonal in the Russell 2000 closely and listening to King World News. Below are the charts.
I”am watching the ending diagonal unfold in the Russell 2000. Monitor the support/resistance lines, if they are breached makes a good short. It is too late in the game to go long, an ending diagonal is the final wave and the move coming out of it is sharp and fast.
The above chart shows the Russell 2000 in an hourly format. You’ll notice that April 9th is the day. There should be massive enthusiasm around that day, the reports coming out should be all great, “happy days are here again”.
I have always like the gold miners, but the gold miners are still stocks and are susceptible to market forces, however, the gold miners should bottom out before the rest of the market and turn higher. There seems to be an expanding triangle unfolding, the next move down should be the last.
I highly recommend listening to King World News.
Over the weekend I was listening to Nigel Farage: Member of the European Parliament (MEP), Jim Sinclair: Founder of jsmineset.com & CEO of Tanzanian Royalty Exploration and others discuss what they think the outcome of the world will be. I personally love listening to the free broadcast, very interesting. My opinion is, every one is right, both the inflationists and deflationists, reason, I think we are going to see some volitily over the next couple of years as the powers that be pump liquidity into the financial markets, they lose credibility, the market tanks, and then the system is reset and we massive amounts of money printing, is that going to happen? who knows, there are a million different outcomes. One thing is for sure, when you look back in history, when nations (and the world is one nation now) do what they are doing right now, the outcome isn’t very good in the end.
Listening to World King News, it sounds like the Gold Bugs are feeling crushed and when the gold bugs are getting crushed the Gold Bug Index isn’t to far from the bottom, or it could be now, will have to see how the HUI index unfolds and pick the best gold miner of the lot. The penny stocks should do well this time around since penny stocks are last ones to go stupid on the upside. When people ask me for a good single penny stock to buy, I like buy and sell PNP.TO up in Canada on the TSX (Toronto) exchange. Pinetree Capital is a diversified venture capital corporation that invests in small mining projects with huge upside, you must remember that small start ups are risky and Pinetree has a lot of ventures on it’s books. I don’t do penny stocks but when the cycle says go for the penny stocks I like Pinetree Capital
So, that’s what I’am watching right now, the HUI Index, the Russell 2000. My Swing Trading Forecast Model is still showing April 9th for a pivot point, will have to see. Also like I mentioned earlier, listen to King World News, it’s well worth your time.