Question -- Russell, why don't the gold shares move up when gold rises?

Answer -- The gold shares have been moving with the stock market, while ignoring the price of gold. I don't believe the gold shares trust the wildly-fluctuating price of gold. I've been thinking that gold will have to rally and stay above 1000 before the gold shares and GDX believe in the bull market in gold. The gold shares have the leverage, but at this point it's a matter of confidence that has been preventing the gold shares from advancing, even on days when gold is up substantially. To make it simple, the gold shares just DO NOT TRUST the price of gold. The price of gold has been too erratic.

In my view, Russell is right on. I don't know where the magic number is for gold. I tend to believe there is not only a magic number but a magic amount of time. Gold will stay above that number for a specified period and then mass psychology will change. Bull