GDXJ Gold Stock Bullish Review

 

Gold stocks have been on what looks like a bearish trip, but we do have a potential, “ABC” corrective bottom,. This would, eventually, take the gold stocks into new record bull market territory.  Since I have a a potential early 2016 Primary degree “A” wave bottom,  we could be in a bigger triangle, by heading up to a “B” wave in Primary degree. All full 5 Minor degree waves would also have to play out. 

Any other potential “B” wave other than a triangle, could push gold stocks to new record highs, past the 2011 peak.  This doesn’t normally happen with a zigzag, as we would be short one extra move. I would also have to drop our present Intermediate degree top down one degree, which would eventually turn the entire move into a flat. 

We have time to think about this until we see another very bullish top. By that time the Gold/Gdxj ratio could show some extreme readings, but we are still far away from that happening. This morning the Gold/Gdxj ratio touched 39.56:1 which it has done only three times, since the start of 2017. 

This is far removed from the potential extreme expensive ratio of 10:1. 

Hits: 1