NEWMONT MINING LEADS MAJOR BULLISH BREAKOUT IN GOLD STOCKS
GOLD BUGS INDEX HITS NEW HIGH... Chart 1 shows the AMEX Gold Bugs Index jumping over 5 points today. In so doing, the HUI broke through the high formed in January. That's only part of the story. The weekly bars in Chart 2 shows that today's breakout appears to be completing a bullish "ascending triangle" that's been forming for two years.
Chart 1
Chart 2
NEWMONT MINING BREAKS OUT... The biggest gold stock of them all -- Newmont Mining -- also achieved a very bullish breakout today. We recently pointed out that the gold bellwether needed a close over 32.5 to complete its breakout. It did so today on strong volume. Its monthly chart shows Newmont has completed a major bottom in the process.
Chart 3
Chart 4
XAU COMPLETING TRIANGLE FORMATION... Because it includes "hedged" gold stocks, the XAU Index is lagging behind the HUI Index (which includes only "unhedged" gold stocks). The XAU, however, has broken the resistance line in a "triangle" formation, which is a bullish sign. I believe the XAU is in the final phase of a "head and shoulders" bottom extending back to 1998. With the HUI Index and Newmont breaking out today, the XAU shouldn't be far behind.
Chart 5
NEW MONEY MANAGEMENT ARTICLE... We've just posted a new MurphyMorris Money Management article. You can find it in the yellow box in the upper part of the MurphyMorris.com main page. Enjoy.
