Bullwinkle, back in 2000, gold equities declined initially with the markets off the top, and then when the bear was kind of "confirmed," that was when the HUI bottomed... soon after that. I am just going off of history, and kind of going off of the $USD at the same time, it appears to have more "juice" in it, quite the "dead-cat" bounce if I must say so myself.
The recent $GOLD strength might be a hangover from the France & Dutch no votes to the EU constitution as well as typical end of the month strength in the futures contracts...
If we look at NEM, arguably the bellwether for the $GOLD equities, we can see the red "bear" bars far exceed the black "bull" bars on the volume chart... this volume trend has been in tact since the recent $46.51 high back in March... I haven't seen any evidence that this volume trend has shifted, this gives further evidence to my thoughts going forward.
Granted & if it's any consolation, I'm obviously still super mega bullish on $GOLD and $GOLD equities going forward, I believe we will see the day where $GOLD is recognized as true currency, thus the $GOLD reserves in the ground of the properties of these companies will be viewed as real money and the valuations will eventually far suceed those of both banks and oil companies... but for the short-term, I would expect $GOLD equities to lead the way down since they haven't yet had the blatant market divergence I've been so patiently waiting for...
On a side note, today's NEM candlestick confirms my thoughts on the HUI (that it hit a top today)... - #msg-6557986
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