GLD broke out of it’s red triangle this morning with a big gap. Its now approaching its first significant resistance area which is the breakout gap from the blue rectangle and the 300 dma from a month ago. The 300 dma comes in at 159.54 today. This area is a big test for gold.

Below is a combo chart that shows the HUI on top and the SPX on the bottom. I call this chart my Divergence Chart as it shows when the stock market is out preforming the HUI or under preforming. For the last 2 weeks or so it shows the stock market going down and the HUI going up. How long this divergence goes on is anybodies guess but until it changes we have to go with what its saying and act accordingly. You can see when the stock market had it’s big decline last year the HUI had a nice rally. The yellow vertical area shows where the HUI topped and the SPX bottomed in September of last year. This chart is suggesting, as long as the stock markets are weak in here the HUI will out preform.

EDITOR’S NOTE :
Rambus Chartology is Primarily a Goldbug TA Site where you can watch Rambus follow the markets on a daily basis and learn a great deal of Hands on Chartology from Rambus Tutorials and Question and Answeres .
Most Members are Staunch Goldbugs who have seen Rambus in action from the 2007 to 2008 period at www.goldtent.org and now Here at Rambus Chartology since early 2012 .
To review his Work and incredible calls from the 2007-2008 period click on the top right sidebar in the “Wizard of Rambus” ….”What If !!” Post
To Follow Rambus Unique Unbiased Chart Work and participate in a Chartology Form with questions and answeres and learn the Art and Science and Mindset of a Pro Trader please Join us by subscribing monthly for $29.99 at
www.rambus1.com
We have many subscribers from all over the world who are glad they did as they enjoy the many daily updates and commentaries provided at this exciting new site
As you will see Rambus (Dave) has prepared us for this difficult period by being one of the only ones to see and warn about this incredibly debilitating PM smackdown as early as Jan 2 2012 …click on the” HUI Diamond in the Rough” Post in the “Wizard of Rambus” top right
You will find Rambus to be a calm humble down home country tutor with an incredible repitoir of all the TA based protocols tempered with his own one of a kind style…simply put…He wants to keep his subscribers on the right side of these crazy volitile and downright dangerous markets
See you at the Rambus Chartology

January 27, 2012

Priscient Note from a Rambus (HUI) post today

“Today were going to look at the HUI from top to bottom. Its been a long two year drought for most of the precious metals stocks. When silver had it’s near parabolic move higher last year the stocks barely budged and even declined in many case. Same thing when gold had it’s big move later in the year. The frustration felt by the precious metals stock investors was beyond frustration. How could gold and silver have such big moves and the underlying stocks actually go negative. All I can say its the nature of the markets to make life as difficult as possible, to wear one out with frustration, and then when the investor finally can’t take it anymore he quits in disgust blaming everybody and everything for his failure. Remember we are competing against the best and brightest investors around the world who want your money. This is a game where only the strongest and smartest survive. So keep those thoughts in mind the next time you put your hard earned capital in markets. If it was easy everybody would be millionaires and we know that can’t happen no matter how smart we think we might be.”

www.rambus1.com

is gathering a nice following from 8 coutries and counting…fun to watch it grow

To review the post which lead to this comment click on the top right under “Wizard of Rambus”