Well kingrichard my point is that the aords and dow jones...

Well kingrichard my point is that the aords and dow jones industrial average are in the process of forming head and shoulders tops vs the US dollar, if these patterns are to break down they point to a few of scenarios none of them friendly to gold shares.

1. A massive crash in world stockmarkets the head and shoulders pattern gives downside projections on break of the neckline of the distance between the head and neckline in the case of the aords/usd this is aproximately 89 - 69 or 20 points so the measured move would see us south of 49 points now if the usd stopped falling and stayed at 72c that would see the all ords at ~3500 points, I just can't see the gold shares holding up in this sort of onslaught. You can do the projections for the dow if you like.

2. A massive us dollar rally, to meet the measured move on us dollar strength alone we would need to see the usd north of 100 again which seems highly unlikely, I can't see a big usd rally being freindly to the gold price.

3. Stockmarket crash accompanied by usd bounce downside for stockmarket would depend on usd strength, this is the most likely scenario imo. Likely bad for gold and gold shares.

I know that the neckline on the both charts has not yet broken down but given the poor performance of the gold shares over the last 6 months against soaring physical maybe the gold sharesx are telling us that things are going to get much worse for world stockmarkets.