Gold Stocks GDXJ Bull Market Update

Gold stocks with this mid sized gold mining companies have finally started to act in a bullish manner, even though they are lagging gold at this time.

Any lagging on the part of gold stocks is not a concern at this time because the Gold/Gdxj ratio is still on the cheap side at a bit under 40:1. Real cheap was 62:1 one which occurred way back in early 2016. There is lots of room for GDXJ to move to the upside so I don’t think gold stocks are ready to die. We have a higher low as well, which is the conventional description for a bullish phase.  I will not be a happy wave analyst until all gold stocks retrace the entire August 2016 top.  A new record high  would confirm this entire bearish phase.

When and if GDXJ gets closer to a 10:1 ratio then it will be time to look for a major top of this gold stock cycle. This may take until late 2018 to play out, but we have to be aware if this gold bull market will end sooner.  In time I may have to adjust my degree levels up by one degree, but that can always be adjusted at a later date.   It is virtually impossible to tell the difference between a “D” wave bull market and an impulse as both have the same bullish mood associated with them.  The only way we can know the difference is the choppy nature of the bullish run.

Some may be tempted to jump on the gold bandwagon now, but those emotional moves can backfire if gold stocks are ready for a correction. From the 2016 bottom to the mid 2016 top, gold stocks have gained close to 300%,  yet gold investors left that all on the table for the contrarians.  I doubt there is another 300%  gain from todays price, but, stranger things have known to happen.  The bullish move from the early 2016 base was not a vertical move, but “C” waves are  famous for going vertical when the party is ending.

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