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Gold/Mining/Energy : Gold & Gold Stock Analysis -- Ignore unavailable to you. Want to Upgrade?

To: jrhana who wrote (13438)	4/25/2008 11:10:17 AM
From: TheSlowLane	Read Replies (3) \| Respond to of 29622

Some people have made a good case, a bullish case, for why gold SHOULD go to $850. I think I've mentioned it before, here or elsewhere. Tom O'Brien (TFNN), for example, has said that gold needs to "build cause" for the next up leg. He thinks that a trip to 850 is in the cards and that said trip is precisely what is needed to make sure that the gold bull has a proper foundation built for the next advance. He said that the last thing you want to see is for gold to go parabolic without consolidating as that is a characteristic of the terminal phase of the bull market and he is not ready for that yet. I don't follow him religiously but I do pay attention to what he says because in May of 2006 as gold was in the $720's he cautioned that we were on the threshold of at least a year of consolidation. And...voila. So...is he right about $850? Maybe, maybe not. The point is, that instead of worrying about every correction and consolidation, I find it useful to have a framework for understanding the role that they play and that will not euphoria-inducing, they are necessary to maintain the health of the long-term bull market. Kinda like Cod Liver Oil, tastes bad, but good fer ya (or so they say).