My take is that Gold will correct to $750-$775 (as indicated in prior posts) and the Gold Stocks will start outperforming the metal staging the next (and final) blowoff leg up that will finally kick start the Juniors.
The USD is due for a Bear Market Rally.........all of this will help align sentiment for Gold stocks next leg.
The Juniors will lag until there is a perception that Gold is going parabolic and the focus will quickly shift from concerns over increasing mining and exploration costs to jubilation over limitless revenue.
In the short run, I was expecting a breakdown last week that didnt occur and hats off to Senor for picking up some Tequila money.
I'll try and post a few charts below on why I think Gold will now "Pop and Drop"
In a nutshell, Gold Indexes and stocks have made a higher low in an apparent triangle formation.
In most cases the higher low has been divergent with Breadth, RSI, MACD and Slow Stochastics, a new High in the Metal will coincide with a test of the upper boundry of the Triangle for Stocks which should be a good short.
Obviously, a spike up in Gold with an even higher spike up in stocks out of this triangle and my short term view will be wrong or delayed.......
