NFTRH went through the phases. It launched in the market's panic phase and twittled around with things like LIBOR, TED & MZM that really are no fun to be reviewing but, in a deflationary panic, were crucial to the analysis. Then, as noted in November/December, the panic phase began morphing into something more manageable, more normal. TA began working well as did the instinctual rhythms of the markets.With NFTRH17's theme of change, we look forward to potential relief for commodities and possibly even for the ship of fools; that is to say, the stock market. A continued gold miner rally (for good reason, given the improved fundamentals that started to become actual as opposed to theoretical in October) is expected as well. But 2009 will be a year when investors will need to be prepared because "...the dynamics in the ogoing boom/bust drama are not going to change. They are going to intensify, and convention is going to be punished more intensely than in the past."
I have uploaded a chart of the GDX (as opposed to HUI) for subscriber Gordon, who has requested some looks at this stock index for potential targets and risk. Now, you know I am not one to get lathered up in bullish frenzy and those gaps still reside lower on the GDX chart, but there is some strongly bullish stuff going on here.
You know, corrections (the kind where people begin questioning themselves during an uptrend) are there for a reason and that reason is to cull out the weaklings who are victimized by the noise of the moment. That is what happened recently as the gold miners did nothing more than make a very healthy test of the SMA 50's. In light of that, I put a bullish target on the chart that seems inconceivable in the near term and maybe it is. Then again, maybe it isn't. The corresponding target for HUI is around 480. Hey, if you're gonna call 'em bearish when you see it, it's okay to call 'em bullish too. Balance, even as the changes intensify and the crosscurrents hit in the coming months.
