i have been frothing to sell the s & p. been waiting patiently.. when i do get stopped in to a short position, i will also become more suspect of gold stocks. not because of the price of gold, but because the price of a gold stock is simply a price times earnings ratio. the valuations of all stocks could come down, as pointed out in grouchos post. goldcorp could still be bullish even if its p/e ratio drops. what is most worrisome as a holder of gold stocks is the effect of the high valued stocks like barrick and newmont. when they start falling the inverse of a rising tide lifts all boats will come into play. take barrick down to a 30 to 1 p/e or newmont to 25/1 and see what it does to the whole sector. once the s and p goes under 1125 and 1100 i will have my hand on the sell button to sell all gold stocks. my other hand will be on the sell button to sell energy stocks. all monies will go into bullion or just waiting to buy gold stocks again. history taught me a lesson over the last 5 years when the gold stocks got swept downward with the market as a whole. sure they recovered, but after the first one i became a gold stock trader and not a buy and hold investor. in the meantime i look for price valuations for gold stocks to continue higher. and of course the favorite is all eggs in one basket goldcorp.