So, this is the first post where I'll be talking about Elliott Wave Theory. The reason it's the first time is because I'm not an expert on this topic, and there are probably other sites that can talk about it with much more expertise than me, to be frank.
Nonetheless, I do feel qualified to make the statement that gold stocks almost always correct in three waves. Corrections usually begin with one sharp thrust down, followed by a counter trend relief rally, and then a finally third wave down.
Below is a daily chart of the HUI, a gold stocks index:
One lesson that I have learned from the above chart, and, by the way, I've had to learn this lesson the hard way, is that it is often a mistake to try to dive into gold stocks on the B Waves. It is much safer to start loading up after the C wave has exhausted itself.
If the past repeats itself, or at least rhymes, then we should be due for a rather large upward thrust starting now. In my opinion, we have just completed Wave C, and, if you look at the above chart, that seems to give the green light for the gold stocks bulls.