High on the Hog

The INK Canadian Insider Index added 13 points this week and continues to consolidate in a tight range, since it first made it back to the 1000 level in early March. 'Float' might even be a better word as the Index has made progressively higher lows, albeit incremental ones, having climbed 30 points since the start of April. What should have the bull camp slightly more optimistic is that the Index has now traded above the 1000 mark for four consecutive days for only the second time since last summer. Of course, we note that the first time it happened was two weeks ago and the Index did slip back down under several days before re-emerging for its second tour above 1000.

The INK Canadian Insider (CIN) Index has shed 7 points or about 1% since our last update, not a major development, since the Index has trended sideways, close to its 200 day moving average, for several weeks.

The INK CIN Index may have gained a meagre 3 points to 1004.26 since our last update, but further analysis provides several reasons for renewed optimism as this new week opens.

Last week, the Canadian Insider Index was unable reverse the downside momentum we highlighted in our previous update, and investors saw the Index tumble 19 points or nearly 2%.

Last week, the INK Canadian Insider (CIN) Index was guns blazing hot after a 120+ point rise off its January lows, and it first made a couple of failed attempts to clear the 1000 level before finally succeeding. However, the 1010-1015 level put up another roadblock on two more occasions, and the Index ended up closing at 1001.51. With that close, the Index was down 5 points over the past week.

Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. In our previous update on Feb 28th, the INK CIN Index turned on the jets and clocked a one week gain of 1%, powering through 970 resistance. Last week, the Index maintained its high velocity and tacked on a further 31 points, registering a closing price of 1006.69 for a blistering gain of 3.1%.

Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. In our review one week ago, we suggested that the seemingly bearish candle two Fridays ago might only mean a slight pause (and not a meaningful reversal). After a mere one-day pause, the Index turned on the afterburners and surged 2.4% or 23.4 points to 995.09. Interestingly, the Index closed Friday much the way it closed the previous Friday, with a reverse hammer.

In my Jan 27th technical review on silver and Silver Standard (SSO), I stated I was very bullish on silver and silver equities in part due to the strong relative strength of silver during the steep January stock market correction. Since that post, Silver Standard has risen about 50% and the price of silver has risen as much as 10%. Indeed, both gold and silver stocks alike have performed very well. Another junior miner Claude Resources (CRJ) which we covered in a Dec 11th technical review has also gained 50% since our review highlighting its relative strength.

Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. Since our last update, the CIN Index continued its climb, rising 11 points or 1% and it even reached a high of 975.76, before closing the week at 971.69. The close on Friday was a bit negative, as it closed down over half a percent from its highs and left a reversed hammer pattern. However, we did see a similar reverse hammer pattern on Feb 22nd and it simply led to a 2-day pause before the Index made a new multi-week high.

Technical Overview by Nicholas Winton, Hedgehog Trader and @HedgehogTrader on Twitter

Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index.  Last week, the INK CIN Index paused, shedding 5 points or 0.5% after racking up an almost 7% rebound from its lows where it gapped up twice in the span of a week.