It looks like the rate increase sent gold and gold stocks soaring. This is a good sign if the gold stock continues to rally. In a bigger bullish phase GDX must clear, it’s 2016 top of $32, but how it gets there is the million dollar question. At this time a zigzag wave one may be in the works, ending at the middle trend line at about the $29 price level. Of course, if a better impulse wave is alive and well, then the next top trend line, would get sliced up with little effort.
The Gold/Gdx ratio also shifted to the expensive side at 52.91:1. This is still very decent and definitely not in the nosebleed section. When we get closer to the extreme expensive ratio of 30:1 then we may need to be more cautious, but for now this bull market is still alive. This gold market will always try and shake off all the freeloaders, that think they can ride an easy bull market.
This afternoon, the US dollar crash sure helped in sending gold stocks up, so this also help my bearish case for the USD.