Like you, I was hoping that we could file away these longer-term charts with the downward price targets. Unfortunately, the price action of yesterday and today means that we have to revisit them.
Let's start with the HUI. We've been repeatedly mentioning that there was a likelihood of the index falling all the way back to the lows seen in 2005 and again in 2008. Well, here we are. I've got a low so far today of 167.92. Not quite the 160-165 that we've been discussing but awfully close.
And, just so you know, things don't have to stop here. Perhaps the ultimate goal is to bankrupt the entire industry but shorting them to death and damnation. Maybe. Check the chart below. Could the HUI fall to 100 or lower? That seems laughable and unlikely but, in the end, WTFK? I know that many of you own these damn things and I've suggested nibbling away at these levels but you must be cognizant of the fact that greater forces than Turdville are at work here and if they want to sell these poor companies down to zero they're going to try to do it.
And here are your 5-year, weekly gold and silver charts. Earlier this month, we figured that The Cartel and the spec algos that are short had to be absolutely salivating at the prospect of running the stops below $1180. They were unsuccessful back then but look to be ready to try again soon. The question becomes: Does this set off a waterfall similar to April 2013, where price almost immediately falls to $1050? Perhaps, instead, it's a fake out and price almost immediately reverses near $1155? Something tells me we may not have to wait long to find out...
And silver is just awful. Like the miners, it has been shorted to death with absolutely no care for fundamentals or economics. Seriously, it's now down over 5% on the day. Why, exactly? Just a handful of hedgy algos piling on the paper shorts, chasing the downward momentum to lower and lower lows. At this point, and especially if gold plunges through $1180, it sure looks like silver is headed to the early 2010 lows near $14.65.
So there you have it. It is what it is. Instead of an A2A today, I'll be in the TurdTalk chatroom beginning at Noon EDT where I'll be glad to attempt to answer any and all questions you have.