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It was a terrible week in the capital markets as the majority of asset classes declined on the week. In the metals arena, nearby Gold fell a hefty 44.80 moving lower four out of five days to finish the week at $621.20 for a loss of 6.72%. Echoing the nasty sell off in the yellow metal were the leading mining stocks wherein the XAU plunged 7.96% falling from 145.05 to a close of 133.49, a decline of 11.56 index points. At the same time, the HUI tumbled 8.89% for a loss of 30.26 moving from last week's close of 340.18 to a reading on Friday of 309.92. For the large cap Gold Indices, this week marked the third time in less than three months that the indices recorded a weekly loss of 6% or more. Financial Sense Junior Gold Index With so much downside pressure evident in the metals sector, it was no surprise that small cap names also came under selling pressure with the Financial Sense Junior Gold Index (FSGJ) declining by 5.16% from a reading of 246.08 last week to close Friday at 233.39, a loss of 12.70 index points. This week's decline of 5% left the FSJG Index below resistance at the 50-day moving average, which ended at 243.24, with the 200-day moving average at 224.42. Financial
Sense Junior Gold Index™
In addition to the weakness present in the FSJG Index, the Junior Producers were also under pressure with that index falling from 274.84 last week to a close on Friday of 256.22, a loss of 18.62 index points or 6.77%. For the Junior Producers, the 50-day average ended at 270.64 as resistance, while the longer-range, 200-day average closed at 245.05. Producer Companies
Turning to the Junior Development and Exploration Indices, we saw losses of 6.16% and 1.04%, respectively. For the Junior Development Index, the week saw the index move from 645.86 last Friday to a close this Friday of 606.05 for a loss of 39.81 index points. Development Companies 
For the Junior Exploration Index, prices edged lower to a closing reading of 116.65 on Friday, down from 117.88 last week. The 50-day average for Development Stocks closed at 639.19 with the 200-day average at 622.74. For the Junior Exploration stocks, the 50-day average ended at 117.10 with the 200-day average at 104.00. Exploration Companies 
Technically, the week's downside action caused the McClellan Summation Index to reverse direction with the Summation Index ending at 575.30, a relatively neutral reading still well above the oversold threshold of zero. That’s all for now, Frank. McClellan Summation Index  ©
2006 Frank Barbera. All rights reserved. *Please note that the individual companies in this index are proprietary and will not be disclosed due to compliance and regulatory issues resulting from the relationship of FinancialSense.com, Puplava Financial Services, Inc., Registered Investment Advisor and Puplava Securities, Inc. Member Firm FINRA/SIPC. |
