As anyone who reads the SMT knows by now I think the first leg up in the second phase of the gold bull market has begun. Take a look at the last leg up in the first phase of the gold bull. Over 61% from the breakout. Now look at the 8-9 month consolidation phase right before that move. I'll point out how well technical rule #1 applied to this huge up leg. First gold broke out in Sept. and rallied hard until Jan-Feb. when it traded sideways for a couple of months then it broke out again moving quickly to $700+. Then the correction that brought gold right back down to the consolidation level. It has been moving steadily upwards ever since and in the process it's been lulling all the gold bugs to sleep. I'm sure most gave up on gold and especially silver on Aug. 16th. Of course that was the day you should have been backing up the truck. Now it looks like gold is ready to breakout of this year and a half trading range. After the size of this consolidation I suspect we will all be amazed how high gold goes. Let's just say I will not be at all surprised to see a 100+% gain during this leg up.
Gold Miners - What next?
8 months ago