first majestic silver

HUI (Fly) Like An Eagle!

December 11, 2005

We have spent some months, now, considering the Precious Metals markets, especially the HUI Index, as being in a great BULL MARKET. Great Bull Markets have lulls that put you to sleep, very irritating moments that make you want to beat your head against the wall, and spine-tingling exciting moments that make jump up and down like a Rally Monkey. So tonight, we will consider just where the HUI Index might be in this moment of time, or, "Should we prepare the bed, put the football helmet on, or get the tennis shoes out?"

If you would like to take a gander at the HUI story up until, now, you might want to wade through some of our previous articles at the link, below.

[I have so many charts of the HUI that I'd like to show. Unfortunately, tonight I have something serious to attend to since the father of one of my best friends has passed away. I would like to publicly thank Mr. Pat Drea for the many gifts of life he has presented to his friends. Pat was a coal miner, a man of common sense, and a man of integrity.]

It seems that Gold and Silver have followed much the roadmaps that we have suggested in past articles. It seems that the HUI Index has also followed our path, but has not experienced the gaping moves that Gold and Silver have seen. So what does that really mean? Does it mean that the PM stocks will be subject to stall, motivating us to bang our heads? I think not. The PM stocks as seen in the HUI index have done most of the hard work in overcoming the resistance in chart. In fact, the HUI index finally broke-out last week and has little overhead resistance in its immediate future, IMO. Everything certainly seems (to me) to fit our last discussion which we called "Verticalicious!" I think we can leave the football helmets in the closet, unless you know of someone who is short the PM stocks. It looks to me like the next 4 to 5 weeks for the HUI index might be simply "UP!" My HUI target of 340 to 393 for the next 4 weeks remains the same. I think the HUI Index will likely "FLY LIKE AN EAGLE……..and let's make that a GOLD-EAGLE!"

In our first of two charts we see the recent action in the section of the HUI chart which I have called our latest fractal, or Fractal 2. Gann always said that when time was up, price would move. I think we will be seeing the price of the HUI Index moving hastily toward our target price at the pink arrow over the next 4 to 5 weeks. If I am right, most of the move should occur in the next 3 weeks, unless we have one week left of a re-test of our break-out. Personally, I like the high end of our target in the 393 region since it fits nicely with the first fractal.

The last chart is a similar chart of the HUI, but it is of the first fractal, or Fractal 1. I have drawn some similar lines to the first chart to give you some idea of the comparisons. We have looked in pretty good detail at the technical indicators of the two fractals and noted their close similarities. All we need, now, is a large movement in price. Of course, nothing is "sure" in life.

I would like to extend my wishes for everyone to have a great Holiday Season. If we are correct in our expectations for the HUI Index, it would certainly be a good first step toward a Merry Christmas for PM stock investors.

I had hoped to have an editorial out listing some long-term charts of PM stocks, but have not had the time. If you would like to search a bit, I had posted a decent sized list to the Gold-Eagle Forum on Dec. 7th at around 3:20 AM. You can find your way to the GE Forum at the link, below. There is a drop-down box that will allow you to access Dec. 7th posts, if you would like to find those charts. Those charts will automatically update.


Again, I'd like to thank all of the posters at the Gold-Eagle Forum for their daily input. This thank you is especially extended to TQ and to Grininbarrett. Special thanks go to Dr. Vronsky and Westerman for creating the Gold-Eagle site and for editing my work. A very special "Congratulations" go out to Dr. Vronsky and Westerman after Gold-Eagle saw its hit counter ring up 203 million this last week.

Thanks also go out to CaptainHook and David Petch of TreasureChests since I have learned so much from them. They can be found at

There are many great editorials that can be found on the Gold-Eagle site at the following link.

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