Royal Gold (RGLD) investors, I wholeheartedly understand building into this name and making it a cornerstone of your portfolio. But if you’re long with a three to eight day timeframe I suggest you give significant weighting to today’s tape.

Price looked bullish into the beginning of November, putting in a rounded bottom support. I’m going to assume I’m not the only person who bought into the held support and is down 2-5% on the name. Read supply. Bulls held the critical $80 level once, the second time they’re going to have to prove themselves.

The $HUI index isn’t adding any benefit to the bull case, setting up for a flush too. Knifing through $460 means a throwback was in order, but be on the lookout for sellers to return to the scene.

Finally and quite possibly your earliest flush bellwether is the AM action in US Dollar futures. So far, it’s weak. Wednesday could have been either aggressive selling or seller exhaustion, and price momentum suggests the dollar bulls may go for a pump. No equity bull wants the pump.

Don’t discount the bulls too much. Let the day play out. The markets may be a bit thin and a late day surge could be the juice the bulls need to spark a spine-busting multiday squeeze.

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