March 6 was an apparent reversal day in the beat up gold stocks. Classic high volume bullish engulfing day. Since then, the evidence is mounting that an intermediate bottom is in, and these stocks should have a tradeable run. GDX, GDXJ & the HUI:gold ratio have all crept higher and are now above their 20 day MA. Furthermore, GDXJ has outperformed GDX. Also, the bullish percentage of gold stocks is now 10% (up from 3) and above the 20 day MA. A classic buy signal is when the BP goes below 30% (the lower, the better), then moves back up over the 20 day MA. This leads to a tradeable rally about 80% of the time.

Finally, there are positive MACD divergences in the daily & weekly charts. These are only secondary indicators, but it does add to the evidence.

One big caveat is that no serious downtrend lines have been broken. I believe it's just a matter of time, but until that happens, there is always a little room for doubt.

Meantime, I've been stepping back into gold stocks in the last couple of weeks – so far so good. I'm staying with producers and still avoiding the explorers for now, except for a couple that have more cash than market cap.