Posted on 09/25/2014 7:52:57 AM PDT by MeneMeneTekelUpharsin
It was two weeks ago when I reported that sentiment analysis, at long last, was on the side of the bulls — at least for a tradeable rally. Yet, far from rallying, bullion today is $18 per ounce lower — a nine-month low — than it was then. Does this mean contrarian analysis was wrong? Have contrarians reconsidered their bullish turn?
No is the answer, on both counts.
Consider the average recommended gold market exposure level among a subset of short-term gold market timers tracked by the Hulbert Financial Digest (as measured by the Hulbert Gold Newsletter Sentiment Index, or HGNSI). This average currently stands at minus 46.9%, which means that the average short-term gold timer is now allocating nearly half his clients’ gold-oriented portfolios to going short. That is an aggressively bearish posture, which is unlikely to be profitable according to contrarian analysis.
Two weeks ago, when I last wrote about gold sentiment, the HGNSI stood at minus 40.6%. So contrarians are even more bullish today than they were then.
(Excerpt) Read more at marketwatch.com ...
I sold mine some time ago. I just don’t see it then bought as much Apple stock as I could muster several years ago.
For an interesting gold idea, check out GLDI, it’s a gold tracking eft with a hi yield. Basically it sells calls against its gold holdings. The downside is it will cap any big upside movement. I think it’s capped at about 3% per month.
Might be of interest to those who want some gold exposure and want to get paid while u wait for gold to rise.
Always do your own due diligence!
Folks buying it up at the close to lock in the dividend. lol
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