We just put together our second quarter stock market forecast. In the first quarter forecast we released around New Years we warned of a correction at the beginning of the year that would come with January earnings season.

Over the past few months we have seen stock market commentators and talking heads try to call tops over and over again in gold based on wacko market theories about where prices HAVE to go based on presumptions or just plain worries about phantom market crashes and bad news.

Over the past few months we have seen stock market commentators and talking heads try to call tops over and over again in gold based on wacko market theories about where prices HAVE to go based on presumptions or just plain worries about phantom market crashes and bad news.

Billionaire John Paulson is now making big bets on gold.

Paulson became famous for last year for making over $2 billion dollars betting against US real estate and foreseeing the financial banking collapse.

Paulson is now launching a gold hedge fund that will buy gold shares and various investments related to gold.

You may or may not have noticed that the gold price is rising and gold stock picks are going nuts. The amount of people who are going for investments in gold is increasing by the day, and this is what I wish to tell you about today so that you too can have in on the action.

This week as Obama travels to China to talk to Chinese leaders about financing the US exploding budget deficit and gold exploded in value - AGAIN.

Just a few months ago gold was under $1,000 an ounce and many people were calling for a big drop in gold prices. Just two weeks ago many called for a bottom in the dollar.

All of these people have been wrong.

Yesterday we saw a big move in gold and gold stocks as the metal rallied over 25 points despite all of the talk and predictions for a huge dollar rally that is supposed to cause a stock market crash. I told you last week that now is the time to buy stocks and not sell them and I believe that even more now.

Last March gold stock expert Dave Skarica and I put on an investment conference/seminar for our subscribers in the Bahamas were he lives. Over 50 people came from all over the world and the event was a huge success. In fact it was so big that we are getting together to plan one with even more speakers and an extra day.

This morning gold is up on news that China is considering buying gold directly from the IMF. The IMF regularly sells gold and the news always seems to spark fear in gold bugs that gold prices will drop. Over the years I've seen this happen a few times a year, sometimes leading to one day drops in gold, but not once has IMF gold sales ended an upward trend in gold prices.

I don't know if you remember but a week ago I sent you a post saying gold was breaking 1000 an ounce and about to begin another leg of its bull run. Well as I type this its now trading at 1020 an ounce and the gold stocks are going nuts. Of course it may not open there, but that is where it is at 6:00 AM EST.