Hammer Time

I am growing a bit tired of flogging Huey here so suffice it to say we got something of a capitulation yesterday as chart geeks far and wide saw the noted support being lost and dumped out. I expect the beautiful reversal hammer on the chart was the result of a) Cramer's pals covering shorts and b) bottom feeders licking their chops. Here is a chart of Goldcorp instead of HUI. As noted on the chart, I bought the hysteria on GG and have not yet decided whether this is a swing trade or a hold. I also bought back the RGLD that I had dumped out of a couple weeks ago.



Gold stock holders are by no means out of the woods and irritatingly, they went up because oil went up. In the latest letter it was speculated this might happen but I am bearish on oil beyond a relief rally and until gold stocks confirm some kind of trend independent of oil, the fundamentals are not fully locked and loaded. Hence, the outlook is cloudy. Gold and the gold stocks should be about money, or should I say funny MUNNY. Period.

Separately, here is the daily status of the broad stock market as represented by the S&P 500. I put this in just to break the gold stock monotony this blog has displayed recently. This is a bear market rally until the major trend is broken, and we are nowhere near that point.