Tuesday, January 29, 2008


Although I've kept my PM trading positions intact, there are several divergences that worry me. First is the divergence between HUI and gold where the stocks failed to make a new high while gold did. Some of that may be attributed to weaknesses in South African golds that were affected by the power outage; however, price/MACD divergence is also apparent in AEM, one of the strongest stocks.

Tomorrow's Fed action is all the more crucial in this light.