I'll let the charts do the talking. When I peruse these charts, I know the May 11th high was it for now. I'm not saying the bull is over, but a healthy pullback is underway, like an eventual 35% drop to about HUI 250 - 260. For the bull to continue, we would need to find trendline support off the May 2005 lows. If not, then things become very questionable. Do I know what is going to happen when we get there? No, but I am VERY certain HUI 260 (breakout level) will be visited.
We probably started a bounce Friday which should be traded and gives one a chance to trim any outstanding long term positions. Emotionally, it is best to be buying the coming trendline support rather than holding into it. Because if it fails in any major way, it won't be pretty.
In this sector one needs to use good money management. For novices, you have been warned. And what about buy & hold? I have been there and done that. In the right stock, it works great, but you have to have the right stock. If you don't, you can lose big.
Good luck.
cheers,
john
P.S. I have been watching these fibs for about 2 years now.
![Posted Image](http://img53.imageshack.us/img53/3743/hui200020012ka.png)
![Posted Image](http://img53.imageshack.us/img53/4761/hui200120024oc.png)
![Posted Image](http://img53.imageshack.us/img53/8492/hui200220045gm.png)
![Posted Image](http://img53.imageshack.us/img53/8107/hui200420066bk.png)
![Posted Image](http://img53.imageshack.us/img53/1793/hui6year8pl.png)
![Posted Image](http://img53.imageshack.us/img53/995/hui6yeara3il.png)
Edited by SilentOne, 20 May 2006 - 11:36 AM.