markets still look good

Being a small stock and not quite yet in production, KGL still follows the US market probably more closely than it does the POG. That should change when we start producing cash.
In the mean time, looking at the charts, I still see good upside in the US markets (yes I know the news from Europe still looks like crap).

The base for the US market was completed a few weeks ago and we now have the bullish crossing of the 50DMA above the 200 which looked likely a few weeks ago because of the momentum.
We are getting close to resistance and the indicator is looking overbought so a small correction similar to that in Nov-Dec 2010 looks likely.
The base pattern looks very strong to me and very similar although larger to the previous base “A” which resulted in a 16% move after the 50 crossed the 200 that time (but first it had the small correction when it hit the resistance line of the previous high).
Many would have thought that small correction was going to be a double top and no doubt we will get calls of a double or triple top this time too if we turn down soon.
From the chart the more likely outcome appears to be another move from here of 16-20% with a small correction or pause first, possible at any time now.
While this looks the more likely outcome right now, more likely never means it’s a certainty. Anything can happen to upset the pattern.
Fundamentals still stink, but the markets appear to be reacting to expected continued money printing and the resulting inflation. The market is an inflation hedge.