Copper is unrepentent in leading the materials sector.
I have put $Copper on this chart, and the TSX Metals and Mining index.
While Canadian stock investors don't push the worlds markets around, it would appear that the copper price pushes all of the metals/mining materials. Copper in Black, the mining index in red.
This correlation is not very difficult to see and if you are optimistic about Gold, keep watching Copper.
While the correlation is not quite as tight, it is still pretty clear.
The Gold Stocks currently have a megaphone pattern. This pattern is considered a megaphone top usually. ( See the $SPX for another example of a Megaphone top from January to April 2011)
One of the things a megaphone top is demonstrating (as a big picture) is the intermediate trend is weakening as the stocks make higher highs and lower lows, until it finally loses support and breaks down.
I have posted the GDX as a separate chart at the very bottom.
To Quote Alexander Elder: "A successful trader must identify his fantasies, and get rid of them"
To good trading,
Greg Schnell CMT