Economic Crisis Survival Board

[OldPro]

upbeat outlook on gold stocks...

to say the least:

* Call yourself a believer. Gold is going much higher. The performance of gold stocks is probably about to stun the gold community with a powerful up move during what is seasonally the worst time of the year. The underlying reality is there is not enough gold. I think junior mining shares are a near “slam dunk”, for the rest of 2011!

* On Monday price fell hard and then bounced right back. Expect this type of strength and volatility to increase in coming months. Notice where the bounce took place, right on the volume based support (VBS). This move is a volume-powered move, and foretells of new highs coming.

* Get ready for the greatest short covering rally in decades. It will light your hair on fire, or at least the hair of those who are short gold stocks. John Embry talks about the invisible hand. I think sellers simply overwhelm buyers, and these lower prices are nothing more than a gift to you from them!

* I stand on the facts; gold stocks are absolutely the greatest bargain on the street. I am accumulating the mining shares, and I issued a new buy was issued on GDX on Monday. Price plunged and closed dramatically higher on the day, a very bullish move.

* As the sideways grind has continued for over the last six months I have continued to trade these shares with my signals. Volatility has been your friend, not your enemy. That friendship is set to increase!

* I am confident that my GDX target of $72 will be hit. The target is based upon my SFS Gold Stock Ratio. From there I am looking for $80.

http://www.321gold.com/editorials/sfs/hubbartt042211.html