Let the full moon take the first step (tomorrow and Monday). Abe will assume the follow-up.

I full-heartedly believe in Eric de Groot's analysis of the invisible hand, which has overstretched since the end of September to make us as bearish as possible. This means that we will have a nice rebound up for at least 3-6 weeks in front of us (who knows even longer), including the normal retracements around the option expiry dates.

I guess (emphasis on guess) this will be up to the $1910 in gold. After that we will get another period, which will make us feel like eternal losers. They will stretch the period afterwards as long as possible (till mid-April according to the average count of EdG) to finally start the long awaited C-Wave. I take EdG's average of around $1780 for gold as a proxy as the point of departure.

Since this is the last opportunity for the shorts in the gold shares to cover near the bottom, I would expect to see the shares outperform G&S from here on. After all, the HUI/Gold ratio is still at an almost record low.