Loading ...Gold Sentiment And Hedge Fund Record Shorts
It’s true that approximately 50% of those who responded to the sidebar poll are either fully or partially invested in PM’s but you’d expect that on a site that (by and large) is ‘pro’ PM’s. We’re just individuals – a tiny, tiny fraction of the investment going into PMs. Me personally ? I’m not pro PM’s. I’m pro buying at cyclical lows and selling at cyclical tops. I’m as confident as it’s possible to be, that $1050 was golds cyclical low, and that we will get a sizeable mid cycle correction into 2023, and that we will peak in the mid/late 2020’s. At that point, I will no longer be pro PM’s. How you trade in and out is up to you and your risk tolerance. My strategy is to add to my position at major lows on the way up, like the one we’re experiencing now. Others will trade daily/weekly moves, but my confidence levels at shorter timescales are lower.
Anyway, back to the main point of my post – gold sentiment. From a recent post on Zerohedge…
We all know what happened the last time the ‘managed money’ hedge funds were this bearish.
The USD is in week 25 and seeking an ICL within the next 2-3 weeks.
The current daily cycle started at the DCL 09 Jul and will more than likely be left translated and fail. A 42 calendar day cycle gives an ICL 20 Aug
So any upside for gold could well & truly be limited after the USD ICL until the it rolls over in it’s next weekly cycle.
When will that be?
We are all hoping that the USD has hosted an early 3 year cycle low on 16 Feb and has now topped in month 6 giving rise to a left translated yearly cycle and subsequent yearly cycles until the next 3 year cycle low.
Under those circumstances gold will do particularly well.
We wait….
We wait indeed. I’m just preparing a post on the dollar.