on a short-term basis. Gold got spanked this morning and gold stocks did, too, and if you only look at today's action in isolation you might be in despair. The following short-term 1 month intra-day chart shows a different bullish take on the action, this chart comparing the AMEX Gold Bugs' Index ($HUI) to the price of gold (proxy used is the ETF GLD):
This is bullish action in a gold stock bull market and suggests that the next intermediate-term move is higher in both gold and gold stocks. The alternative scenario, that gold stocks are going to fall to "catch up" to gold on the downside is what those who are bearish on gold stocks may think is going to happen. We'll see who's right soon enough...