The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.By David Banister NEW YORK ( TheStreet) -- One of the most common questions I field from my forecast and trading subscribers is can we buy gold stocks yet? We have seen gold consolidating and correcting, following a 34-month rally that I discussed last fall was going to top out around $1,900 per ounce. This type of rally went from October of 2008 to August of 2011 and we saw gold rally from $680 to $1,900 per ounce during that time.
The best way to make money long term in the market and to grow your capital is to develop a method where you can define your risk levels within reason near the apex of a downside move, and then scale into that final apex and catch the rally on the upside. This is difficult to do but at my ActiveTradingPartners service we have developed a strong methodology that takes advantage of "herd behavioral characteristics." We have not yet bought into the gold stock sector, but I assume fairly soon we will be dipping our toes in the water, right near the apex lows.