The XAU Index is at 108.87 today, off 6.60. Does this surprise me? No, I'm not surprised. The Index had been under pressure as a result of an exhausted chart state, mainly based on pressures from the 200 and 1000 day averages, and along with lower gold price, well, it just gave up for awhile. With the Index at about 109, it's looking cheap.

Just the recognition by the informed that the 5000 day average is so near at 100 will provide emphasis for significant buying of the pm shares currently and on any possible further weakness in the sessions ahead. Even Barney Frank's comments concerning reinstatement of the uptick rule for shorting takes away the heavy hand of the hedge funds and other price miscreants from doing another historical bear raid on this group like they did in October.

Aside from all the in and out trading and the investment bank schemes against low price juniors and explorers, the technical sentiment is becoming quite positive as the XAU approaches the 100 level. This current down phase looks to be the last opportunity that will be available to load-up for the big ride in the shares that could well last into mid-2011.

Just took another look at the ECU chart this morning. My favorite areas to paticipate in are: 1, 10, 100 1000 followed by the 5, 50, 500 and 5000. ECU has held very well in the general area of 50 cents and this area should provide a strong platform for a rocket launch into the stars when it is fully fueled. I would love to see some big blocks crossed in here.