GDX, Bull Market Review




Finally, gold stocks have started to correct, but how far down they can go cannot be accurately measured at this time. The bottom trend line may not hold, and if that ends up being the case, then my wave counts need to be adjusted.  There still is a good chance that this bull market could be a big “B” or even a “D” wave, but either way this bullish phase is far from finished. Yes, we hit a high gold/gdx ratio of about 44:1, but now that has improved with a gold/gdx ratio at about 47.73:1.

This is a good thing, as we were still far away from any extreme of 30:1.  I keep track of about 5 gold/stock ratios and when they all turn closer to the extreme side, then I would be inclined to look for the end of this bull market. Until such a time arrives, this bull market should continue, after good corrections have taken place. 

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