by Jordan Roy-Byrne, CMT
The Daily Gold
The gold stocks have had a tremendous rally in recent months that has left most investors and even gold bulls on the sidelines. From low tick to high tick GDXJ has more than doubled while GDX has nearly doubled. Indices such as the HUI and XAU have more than doubled. It has been a fantastic rally yet both anecdotal and actual data suggests there has been a major wall of worry building. Although gold stocks may be starting a correction, the presence of a strong wall of worry provides further confirmation of a major trend change.
In recent weeks readers and followers of various gold centric websites have been bombarded with bearish commentaries from pundits and analysts forecasting a correction. More than a month ago the reasoning was the commitment of traders (CoT) report. More recently, the reasoning revolved around an alleged “parabolic move” in the gold stocks and a budding head and shoulders top in Gold.