Are We There Yet? Gold Mining Stocks

Screenshot 2022-05-05 at 16-51-24 NYSE ARCA GOLD BUGS INDEX (^HUI) Charts Data & News - Yahoo Finance.png

Are we there yet? Is it time for the gold miners to rocket to the moon?

If you ave been following this blog, then you might recall that over a month ago I posted some key numbers to watch on the HUI index. These numbers will routinely show up on the HIGH, LOW and CLOSE of the market.

Original Post: Gold and Silver and HUI Index

The full list of target numbers is:

245.21
268.70
280.36
290.84
299.06
312.97
334.96
357.40
370.86

Today the HIGH of the HUI came in at 289.43, not far from the 290.84 level but not close enough to call it a direct hit. A direct hit of this number came on March 29th when the HIGH came in at 291.01. Today the HUI approached this level and abruptly sold off posting a huge outside bar to the downside.

OUTSIDE BARS are very important to pay attention to as they can signal future directions for the market.

If the BEARS can take out today's low of 272.68, then the 268.70 is the next target with only 245.21 left on the list.

For the BULLS the goal must be a CLOSE above 290.84, its just that simple, 290.84 or BUST!

So what happened? Everything seemed great after FED DAY?

Screenshot 2022-05-05 at 17-06-30 wanted dead or alive Meme Generator - Imgflip.png

Many of you may have forgotten the BOND VIGILANTES. Perhaps you have heard of them but thought they were only a myth or a scary legend.

The BOND VIGILANTES are very real! It is just that for some 30 years they have been no where to be found having been driven into deep hiding since Central Banks around the world began buying their own bonds.

Screenshot 2022-05-05 at 17-10-46 Jerome Powell But I don't know tho Meme Generator - Imgflip.png

Out of the desert of myth and legend rode the BOND VIGILANTES to raid the financial markets!

Screenshot 2022-05-05 at 17-12-07 US 10 Year Treasury Yield - Investing.com.png

Spiking the 10 year yield to 3.10% before returning home with their plunder.

THE DOW

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THE NASDAQ

Screenshot 2022-05-05 at 17-16-11 NASDAQ Composite Index (IXIC) - Investing.com.png

GOLD

Screenshot 2022-05-05 at 17-17-07 Gold Futures Price - Investing.com.png 15 minute chart

The HIGH in gold came in around $1910 only to come smashing down.

SILVER

Screenshot 2022-05-05 at 17-18-47 Silver Futures Price - Investing.com.png

Silver had a HIGH today of $23.33 before the BOND VIGILANTES came to town.

So here is the game, the BOND VIGILANTES are daring the FED not to buy the bonds. If the FED, fails to buy the bonds, then all hell breaks loose.

Screenshot 2022-05-05 at 17-46-09 Cowboy Gun Showdown Meme Generator - Imgflip.png

It's HIGH NOON at the OK Corral.

Who will blink first? Will the FED back down? Will the Bond Vigilantes raid and pillage the markets?

If the FED fails to drive off the BOND VIGILANTES nothing is safe. Mortgage rates rise killing the housing market. All cost of borrowing money rises stifling the general economy. CASH shall once again be KING killing demand for everything but essentials i.e. food and fuel.

By the way Jerome Powell did mention yesterday that the FED would use its tools to lower inflation by limiting DEMAND. Nothing kills demand like higher interest rates.

Precious metals are a mixed bag in this scenario. The only certainty is volatility.

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Peace out and Stack On!

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