Gold Stocks

The strength in gold stocks relative to the stock market has not only breached the 1980 up trend but also the 2003 and 2006 lows in 2009. The subsequent "kiss and fade" suggests that support has become resistance.

This technical strength, however, has been met with skepticism and fear towards holding gold shares. While this seems counter intuitive, it is the market's way of carrying the fewest number of investors long for the ride a critical inflection points.

U.S. Large Cap Stocks Capital Appreciation Index (LCSCAI); S&P 500 to S&P Gold Ratio (GPM)*:* S&P Gold from 1945, Barron's Gold Stock Index from 1939-1945, Homestake Mining