Hope For The HUI

It's based on technical analysis, and on using Robert Prechter's bear calls as a contrary indicator. Adam Brochert compares the six-month chart of the Amex Gold Bugs Index (the HUI) to its July-November 2001 chart, and finds a similar pattern. Brochert also notes that Prechter was also bearish on gold in November 2001.

The HUI took off starting in December 2001, and soared in early 2002 as the gold bull market got rolling. Brochert claims, on the basis of the above similarities, that thr HUI will start rising.


Of course, for his comparison to be valid, gold itself will have to take off. There hasn't been any sign of a resurgence so far.