Monday we finally got the surge in gold that was an indisputable sign of bullishness. Today gold is knocking on $1250, the recent all-time high, and if it clears that we’re off to the races.

In case you’re wondering about gold mining stocks, here is a good article that presents the big picture and the recent picture:

[1] http://www.gainspainscapital.com/

Basically, mining stocks seem to be separating from general equities, though they have not broken out in the way gold has, yet.

The same large inverse Head and Shoulders in gold basically also exists in mining stocks, and there is a projection to 600 in the HUI. But they have not yet cleared their last all-time above 500. In fact, they have behaved much like silver and have been somewhat muted on the upside of late. But that also means they could have further to go.

It’s possible we’ll see the S&P visit 1010 before there’s a rally in equities. It’s also possible we’ll see the Euro visit 1.18 before it rallies. That may be the window in which gold shoots to  $1350. We’ll see. It’ll be interesting too when the dollar drops. Could be good, or could be bad, at least initially. The dollar has gone parabolic in a bearish rising wedge. But it could still go higher from here.

Buckle your seatbelts!