Increasingly bullish prospects of gold stocks
Despite the recent weakness we are becoming increasingly bullish about the prospects for gold stocks. Actually, it's partly due to the recent weakness that we are becoming increasingly bullish, because the extension of the downward correction makes it more likely that the overall advance from the May low will last well into next year.
We had thought that the most likely alternative to the overall advance extending well into next year was an intermediate-term peak late this year. But with the corrective action that began in September having continued until the third week of November there is now almost no chance of an intermediate-term peak by year-end. The correction has been long enough and large enough to lay the foundation for a rally lasting at least a few months.