HUI has not followed through well after Friday's thrust and it looks like another failure at what is becoming well defined resistance around 300. It's time for at least the more emotional gold bugs to get their panties all up in a wad again... the fix is in, they're shorting gold stocks and manipulating gold so the 'sheeple' don't see how bad things really are.

Well, actually the HUI is looking very normal (for a small market that never really acts the way we want it to, even during bull trends and bull markets. The ups always seem to go too far and get too lathery and the consolidations (shakeouts) always seem to go a day or two longer than patience has allowed for.

I do not know when the consolidation will end but I do know these things... gold mining companies are improving fundamentally as each month goes by and gold remains in orbit in relation to oil, steel, nickel, copper and those way down in the dumper human hopes for prosperity. Chart resistance, when hammered away at enough times, tends to break eventually. The target remains a minimum of 350 and down the road, after we sort out the next deflation impulse scenario, much higher.

Huey is hammering away at 300 area resistance and providing some okay trading opportunities in a range of 250 to 300, all the while working off market leading over bought conditions. We have doubled since the bottom in October after making a higher low in November while the ship of fools made lower lows and industrial commodities to this day continue to try to pick themselves up off the floor. That is relative strength, and it is indicative of where the real bull move is and where the Memorex ones are.

The dollar chart is a mixed bag, with a bias toward bullish. It has turned down from what should be resistance (the H&S top cluster), but it is not over bought and momentum remains healthy. Also, the buck has not yet broken down from an orderly uptrend. It needs to do so here and now to avoid a continued grind in the gold stocks (and potential decline to support in the 250-275 range). Global markets are up this morning but the SPX and Dow do not look good, with NDX only marginally better.

I am operating under the premise that there is only one bull market out there, and it is not the 'price' of gold as I parrot to you 'gold is not about price, it is about value' (and it is always a good time to hold value). The bull market is in gold miners, which are simply companies that dig something out of the ground that has gone nearly parabolic in 'price' related to eveything that matters to their bottom line costs. But there are those pesky issues of market perceptions (enter, Uncle Buck) and trader emotions. It's what makes markets fun.

PS: I just edited in the title (the very creative 'HUI') which I forgot, and cleaned up about 20 typos. This is what happens when you stay out late jamming on a Tuesday night and then hear the same song (a new one we hammered out for nearly two hours) over and over in your head while trying to sleep.