by Jordan Roy-Byrne, CMT
The Daily Gold
The gold stocks started to correct this week as large caps were off 13% at Thursday’s low. Both juniors and large caps have made tremendous gains since the January 19 bottom and are ripe for some profit taking. The Fed minutes provided the catalyst for such and we should also note the tendency for gold stocks, while in a bull market to peak in May. History argues that the miners could correct at least 20% now before moving higher.
Below is the HUI Bull Analog chart which is updated through Wednesday. At this point in the 2008-2009 recovery the HUI corrected 22% and at this point in the 2000-2001 recovery the HUI corrected by 20%.