by Avi Gilburt
While we still do not have a long term confirmed bottom in the metals complex just yet, the price action is quite indicative of a very bullish market. You see, when the metals are truly in a bullish trend, they do not see deep retracements, which forces market participants to chase price, as most corrections are simply high level price consolidations. This is starting to look like what we are seeing in the GLD and GDX.
Last week, we were looking for a further rally in the metals complex. But, our expectation was that the rally would likely be part of a corrective pattern.
Specifically, as I noted about the GDX: