Major bottoms in any market or sector usually produce big rebounds and big gains for those who are correctly positioned. For some, the initial strong gains create trepidation that the market will experience a big correction or revert back to the previous bear market (which created the foundation for the big rebound). I’ve noticed this trepidation over the past few days from subscribers and other advisors preaching caution or hedging their recent gains. This is all well and fine but the evidence as well as history suggest not to worry because the gains will continue unabated over the intermediate term.DYI Comments: Gold and the mining companies stock prices have taken a severe market correction. For those who need to rebalance this continues to be a good time to take those out sized gains from the general stock market and reinvest into gold mining shares. Gold is pricey but still has more to run in DYI's judgment and the Dow/Gold Ratio historically will back that up. Not until sentiment is so overwhelming gold and the miners will continue to have room to the upside. Of course it will be volatile to say the least.
Market Sentiment
Capitulation
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DYI
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