what is going on, page-2

KCN is just following Gold miners sentiment. If you read the following 2 essays by Scott Wright he explains that since Jan 2011 where Gold has risen 17%

Major Gold Producers are down 18% (eg Barrick, etc)
Small cap producers are down 40% (KCN would be here)
Explorers are down 49%

Gold stocks are way oversold compared to the POG and sooner or later something has to give. The HUI/Gold ratio is something like 0.28 where for the 2003-2008 period it averaged 0.51. This means Gold stocks must increase something like 80% to get back to the previous HUI/Gold ratio (or Gold would have to fall to around $900)

http://www.zealllc.com/2012/jnrexpld.htm
http://www.zealllc.com/2012/hgrpanic.htm