HUI Did we hear a lion roar or was it something else

HUI JUNE 7, 2017

Was that a lion we heard yesterday in the HUI or was it something else? The HUI, GLD and SLV were all down today but nothing drastic. The HUI closed at 202.47 giving up roughly 2 points or 1%. GLD was down $0.65 with a close of 122.45. SLV was down $0.16 with a close of 16.65. After a move like yesterday a give back is not unusual. Yesterday's action in the HUI actually filled a gap that had been on the charts since 04/21/17, but where to next.

The HUI still has rising stochastics which is good for a bullish argument. The question is whether the HUI will take out the high from yesterday at 204.55 if so then still room to run. However if the HUI dips below today's low at 200.16 then we may revisit rather quickly the 193 range.

GLD to me looks overbought, that in and of itself does not mean anything except now is a time to be very vigilant. Yesterday's action created a small gap at the 121.94 area that could be filled.

SLV, to me, also looks overbought and not as strong as the HUI or GLD. Yesterday's move was an exact 50% retracement from the high on April 13, 2017 of $17.59 to the low on May 9, 2017 of $15.21. (So much for the random walk theory of markets)

What I am looking for tomorrow is to see whether the HUI takes out 204.55 then higher. I do not think I will chase this market, by adding any longs. If however, the HUI drops below 200 then yesterday's move just filled the gap and further weakness into the end of June beginning of July time frame.

These are just my personal thoughts, not advice etc. Nice to hear any of your thoughts.

Either we heard the roar of lions yesterday or it was something else.