Gold Stocks, GDXJ Bull Market Review




Once I reworked the crude oil and the GSCI, it seems to me there is more upside to come, with this gold stock bull market. The question I always try to answer as soon as possible is, “What type of a bull market are we going to get”?  If the 4th wave bottom is true, then we have to determine if we are going to get a 5 wave impulse sequence, or a diagonal sequence? For decades, gold/silver stocks have been in a big diagonal bull market, in which silver is a shining example, then it is fruitless to use impulse wave labeling now.

Deep diagonal plunges are called bear markets by the majority, but in reality those bear markets are deep diagonal corrections. The choppy bull market in gold stocks from about 2000 are not impulse waves, I call them diagonal wave structures. We can keep an impulse wave count going, but the 2016 starting patterns are not suggesting an impulse at this time. We would still have some distance to travel just to get to the net 50% price level, but we know that “C” waves can and do go vertical, when they reach their conclusion.  

The arrow above points to where ewe can be, now and what we may get is the zigzag above. It would be one move, consisting of 3 smaller moves, (ABC) in Minor degree. 

I can get many, of the gold stock related ETFs, into this wave count, so that is a good thing. The investors that are just starting to jump onto GDXJ, have left 200-300% gains on the table already, as they buy an asset class that is pointing up.

We could still be in a correction so this may still take some time to get going.