In the last Biiwii.com Letter (which I should update but like the COW seems to be suffering from the ease with which blogging allows me to present ideas) I showed a monthly DGR chart and the down-gap in investors' spirits that needed to be corrected. We have not quite hit the monthly targets for bullish upside but the daily chart is now arguing that the resumption of the crushing of paper bulls could resume at any moment at least in comparison to a real asset like gold. Recall the next downside target upon resumption of the true big picture trend is a DGR of around 10. That is simply the next target. I expect much lower in the coming years.
In the shorter term bullish sentiment in gold needed to be worked off, no matter how much 'us against them' warfare some prominent gold bugs trumpet. It is interesting to note that even some 7+ years into a relentless bull market in gold (and bear market in DGR) how the mainstream clings to the truths of the previous secular stock bull market (gold bear). Despite short term misgivings by naughty casino patrons who know somewhere deep in their souls something is wrong, they cling to convention just as their training dictates - which is just the way Wall Street likes it. It is a hallmark of a solid bull market with plenty of upside ahead of it that the masses will not acknowledge it until much higher prices prove to them that it is 'okay' to join in. We will no doubt one day be treated to some real good sounding intellectualization about why gold is a bargain at $2000 or $3000 or $5000 per ounce, thus giving us the affirmation lacking since 2002 (in my case). I like it just fine that this affirmation is lacking by the public. Charts and fundamental realities tell a different story.
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