Gold Correction - I'm Not Worried

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Consolidations within long-term secular bull markets can be thought of as springs being coiled. The longer the consolidation, the more potential energy is stored and the more explosive the next upleg will be. This phenomenon and technical set up was pointed out in previous articles and unfolded as expected. It is interesting to note that the latest upleg lasted almost exactly as long as the previous consolidation...

Gold investors get nervous every time a correction materializes and gold fails to add another $20 every week. The barbaric relic¯ crew comes out of the woodwork to denounce precious metals investing and proclaim that the commodity bull market is over. These are likely the same experts that have called a bottom to the financial and real estate markets every week for the past six months.

...Consolidations within long-term secular bull markets can be thought of as springs being coiled. The longer the consolidation, the more potential energy is stored and the more explosive the next upleg will be. This phenomenon and technical set up was pointed out in previous articles and unfolded as expected. It is interesting to note that the latest upleg lasted almost exactly as long as the previous consolidation...

what is important to note is that although the recent correction was painful for many gold investors, it is healthy and completely within the scope of the longer-term projection...

So there is no reason to be antsy or worried at this particular juncture. Gold is catching its breath and will either return to the explosive growth of the past few months or return to its long-term channel for a more orderly advance. Jason Hamlin, www.GoldStockBull.com

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