There does not currently exist the kind of stubborn optimism among gold timers that is the hallmark of major market tops.
Consider the average recommended gold market exposure among a subset of short-term gold market timers tracked by the Hulbert Financial Digest (as represented by the Hulbert Gold Newsletter Sentiment Index, or HGNSI). In the wake of Thursday’s 3.2% decline in gold bullion’s price, the HGNSI dropped 14.3 percentage points to 23.5%.
This not only is a big drop for just one day, which would, in and of itself, be a bullish omen, according to contrarian analysis. It’s also bullish that the HGNSI level that prevailed going into Thursday’s session was already surprisingly low, given how close gold bullion was to its all-time high reached earlier in June.
To put the current HGNSI level in context, consider that the HGNSI’s all-time high is 89.6%. So by no stretch of the imagination can current sentiment levels be described as excessively high.
http://www.marketwat...unge-2010-07-02
the battle
Started by
dharma
, Jun 07 2010 09:56 AM
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