I thought most of the weak have already abandoned ship. GDXJ has moved up some but 40 by year end is doubtful. I'd be surprised if it ever makes it back to $30. It won't happen till funds aggressively invest in these losers instead of shorting them every chance they get.
I stand by $40 ---- The CPI inflation model is beyond manipulated and only believed by the talking heads. We are entering into a massive stagflation event similar but far worse than the 1970's dished up. Hold gold.
I think this type price action was pretty much expected. It was overbought based on the Daily charts and needs to test previous resistance which (if long) we hope holds.
Certainly not over bought on the more valid Weekly charts.
Jackson Hole provides the "event" to cause the panicky retracement as everyone's nervous. Most are not expecting any real QE3 anyway so I would expect other than "for show," much of the negative effect is already priced in.
Now we have to see how far down it goes and with how much conviction~
WIll it begin to slowly grind down on heavy volume, or will we see a fast spike down simply to ruin the long weekend and scare our shares into the smarty pants hands.
GDXJ will never be $40. Gold bull is over my friend. Gold stocks are practically jumping up and down and saying, "Don't buy us!" Observe how pathetic they are when gold has one of its little bounces. This'll be $12 by December.