Oil & gold are starting to anticipate a resumption of the dollar rally and both have begun moving down into DCL’s. As golds cycle is typically shorter than oil it should bottom sooner. Like I said this morning I’m expecting a test of $1131 before enough buyers come in to produce a bounce out of a cycle low. This means the mining stocks are set up to take a real beating over the next 5-10 days as the HUI is already right at the November & 09 lows. It has virtually no chance of holding that support once gold really starts to accelerate towards $1131. Once that major multi year support breaks the bankruptcy phase will get started in earnest.............................. HUI.................................................. I can’t stress this enough, BE PATIENT! We are going to get an absolutely unbelievable buying opportunity later this year, or early next. Miners are going to reach completely irrational and unheard of valuations with upside potential that will be truly mind boggling. BUT, you have to avoid the bankruptcy phase................................ If you buy too early the chance of surviving the horror show that’s coming and making it out the other side are virtually 0. I believe we are about to witness a bear market bottom that will rival any bear market of the last century. And as we all know the more severe the bear the greater the bull to follow will be. So the best thing that could happen to this sector is for the HUI to collapse to completely absurd levels (think 50). If it does then the thrid phase of the gold bull will be something no one can even dream of right now. I can easily see the HUI rallying to 1000, 2000 or even higher if we get a truly mind blowing bankruptcy phase to stretch the rubber band to the absolute lowest level possible.