Weekend Update - GOX, HUI, SOX, & SMH
CBOE Gold Index (GOX)- Daily Chart
The daily chart of the GOX illustrates that it has just completed a wave (3) to (4) / ABC pullback. Today the GOX broke out of its recent downtrend channel. It is up 3.37% at 132.39. This index looks bullish. The next resistance area is 149.40. It appears that the GOX is forming an ascending triangle. Indicators and oscillators are still bearish, but are starting to reverse to the upside. It looks like a breakout is forthcoming.
The Gold Bugs Index - Amex (HUI) - Daily Chart
The daily chart of the HUI illustrates that it has completed a wave 3 to 4/ABC pullback to the uptrend line at 278.47. The HUI did not overlap the previous wave (1) to (2 ) high at 250.33. The HUI is now in a bullish ascending triangle pattern, with wave (5) above previous resistance at 349.48. Today the HUI broke the recent downtrend line and is up 3.50% at 314.02. The indicators and oscillators are also bullish, and I am just waiting on a bullish trend reversal on the Aroon. The recent pullback in the precious metals has been pretty harsh. However, this does not change anything, and the sector still looks bullish.
The Semiconductor Index (SOX)- Monthly Chart
The monthly chart of the SOX shows that it is currently in a wave iii to iv pull back. Furthermore, it is forming a large bullish ABC pattern. The moving averages are holding up nicely in a bullish fan, and we are just waiting on a reversal to the upside. Indicators and oscillators are in a bullish trend reversal. It is the first time in a while that the SOX looks decent, even though the sector has been underperforming. The first price target is 649.80 which is the 38.2% retracement level.
The Semiconductor Index (SOX)- Weekly Chart
The weekly chart of the SOX shows that it is currently in a wave iii to iv pull back. The moving averages are holding up nicely in a bullish fan, and we are just waiting on a reversal to the upside. It is highly unlikely that the SOX will cross the 200 week moving average. Consequently, I added SINA to the portfolio. Indicators and oscillators are look to be bottoming.
Semiconductor Holders ETF (SMH) - Daily chart
The SMH daily charts looks very similar to the NDX chart. It appears to have held it's uptrend line for the past year. I would wait to trade the SMH until it hits the uptrend line and then bounces off it, confirming that the lows are in. Indicators and oscillators are still bearish. Today the SMH is flat at $36.20.
