Ok, we are presently experiencing fireworks and excitement across the investing landscape. Global markets are skidding, and there are few places to hide. A $12 billion debt offering from Chrysler has been scuttled, and reverberations are rippling across Wall Street. The 10 year treasury is presently yielding 4.90%...anyone notice?! The S&P 500 broke below its 50 day average again. We've been here before, so will this pullback be met with another round of buying? The story since 2002 has been to buy the dips. As for the break in the gold shares, the Gold Bugs Index (HUI) appears to be smack dab in the middle of its Bollinger Band, and we've drawn down to the 20 day moving average as well. If you are seeking to exploit a move in a strong sector, this would be the time to buy. Lastly, the HUI made a powerful move from 320 to 370 (50 points), so if you think there is one more day of downside ahead, you might get the opp to buy in at the 345 level, which is a pullback of 25 points off the recent high - which equates to 50% of the magnitude of the recent move. Good luck.
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