deviantinvestor.com / By GE Christenson / May 9, 2013
This article is reprinted, with permission, from John Townsend atThe TSI Trader.
Many articles have been written on sentiment and its role in establishing where a market lies in its up-down-up-down cycle. This article addresses sentiment from many perspectives and concludes that the gold market is at an historic low in sentiment. The implication is that a rebound in price seems both imminent and inevitable. Read this impressive and highly intelligent article!
GE Christenson
The Deviant Investor
Sunday, May 5, 2013
Gold and Silver: Sentiment Reversal is Inevitable
The usefulness of sentiment’s stealth crystal ball is about to be revealed to the litany of unsuspecting precious metal bears and skeptics who have convinced themselves that gold’s bull market is either over or, at the minimum, in need of lengthy ongoing retesting, restructuring and consolidation.
This article will bring us up to date as to the degree of current bearish sentiment regarding both gold and silver using no fewer than 5 sentiment indicators (with 9 illustrative charts), as well as provide the reader with an opportunity to observe the price outcome of previous bearish extremes using these sentiment indicators.
When we begin the sentiment indicator discussion we will look at charts of the put/call volume ratio (options) of SPDR’s Gold Trust ETF (GLD) and iShares Silver Trust ETF (SLV), then examine Hulbert’s Gold Sentiment Index, followed by the Blees Rating, then gold’s Commercial and Non-Reportable (futures) traders positioning detailed in the most recent Commitment of Traders Report (COT) from the CFTC, and conclude with a daily gold futures price chart that includes the corresponding readings of the Ulcer Index indicator.