June 11, 2006
Gold - nearing my kill zone.
We are pretty much there. More to my surprise, many of the stocks are down 20-40 percent with the 10 percent drop in the metal.
That is very out of whack. The gold stocks should firm and/or we could see another $30-$40 drop in the metal itself.
With that in mind, I am bullish on gold stocks but won't likely add more stocks or the metal itself until we break $600. If we rally straight up from here, my buys the last week should do fine.
I would like to see another $30 break in the metal to build a big position.