"The penny stock market (not gold stocks) is not looking bullish yet and to be completely honest, the selling to date may only be half of the downside move yet to come. But I will cover this in my next article later this week. The chart below shows both the Toronto Venture exchange (penny stocks) which is the blue line, and also the gold mining stock index being the red and green candlesticks. Looking at the positive side of things the penny stock market and gold stocks are trading at their 2008 lows. Odds favor we get some type of bounce and the question after that is to see if the price and volume are bullish, or if it’s just a bounce. During the 2000 stock market top, we saw gold stocks bottom and rallied over 300% within a year. With any luck that is what we should see in gold stocks looking forward 12+ months. Unfortunately major trend changes and asset rotation does take a long time to reverse direction. It can take 12 months to unfold in some cases. I do feel we are much closer than that, but only time will tell. Many trades started buying gold stocks last year in anticipation of this play unfolding. They are now under water on these positions which is not a fun position to be in, but the truth is that I think this play is going to turn a big profit over time. Getting long gold stocks looks like one of a couple major investments that I see setting up for 2015-2016." http://www.gold-eagle.com/article/gold-forecast-and-penny-stocks-testing-key-support</ Many trades started buying gold stocks last year in anticipation of this play unfolding. They are now under water on these positions which is not a fun position to be in, but the truth is that I think this play is going to turn