so, was that the bounce?, page-16

Hobo-jo, since you asked so nicely ;).

We have a gold cycle low ahead of us. We have have a convergence of fib dates on the 10 th March both weekly and daily and another important factor which I wont go into on this post.

As i have stated previously i expect to see lower gold price and positive divergence beginning to emerge in gold stocks as a bottom approaches in gold. Ie, we could see gold down 20-30 or more bucks and gold stocks finish flat or even up.

I am not sure if you remembe, however last week I was prepared to begin buying gold stocks on strength over gold but unfortunately it didn't eventuate and many actually dropped under crucial levels signalling lower targets. Some of the targets are much much lower. That may reverse but it has to happen very quickly.

Look at US listed GDX and ASX XGD. GDX's long term chart ie10 year, has a very large and complex H&S top which is continuing to unfold. It as been breaking neck line after neck line to the downside for months and the last week it broke the last major neck line to the downside.

The target is the 08 lows...That.target is $15 with GDX currently just over $38!!......over 50% lower.
I keep hearing and reading how gold stocks are so undervalued relative to gold but what IF gold does drop to $1100 as Martin Armstrong is expecting?
Then all the current relative value talk flies out the window and means didley squat. Gold stocks in that case will very quickly be revalued down inline with gold. In fact I believe that is already occurring.

To summarise. Gold stocks look weak and lead the gold price. They need to show strength right now compared to any further weakness in gold. Not next week or the week after. Right now as they have broken down.


Cheers