Just taking stock of where we are. Following todays 50bps cut, the Dow dropped, the Dollar tanked and PM’s launched back inside the bullish patterns I’ve been charting. Was that plunge an ‘anomaly’ ? I’ve not seen anything quite like it. Just as we were about to cross that $31 threshold on GDX, the ground opened up and swallowed us.

So here we are, just a few days later, close to where we started, and I’m wondering…is that the point of recognition ? I wasn’t expecting to come quite like that, but will that prove to be the defining moment for this PM bull. Have investors been shocked out of their complacency and forced to consider a ‘safety hedge’. If the look seriously at GDX/GDXJ/HUI and their ratios to the SPX/DJIA even a chimpanzee could figure out the imbalance and the prospect of a reversion to the mean. If just a small percentage of the wealth that was pulled out of stock markets in the last few days finds its way into PM stocks, well, you can imagine.

Now take a look at the GDX chart below. IF we finally break that $31 line (and we’re already breaking out of the bull flag), then we can expect to see stocks out-performing the metal, and silver out-performing gold as the GSR reverses. One day at a time though. Here are the charts…