Are Gold Specs “Stretched”?
Probably so, but how long can they remain stretched?
I just received this excellent examination of that particular question. https://goldtadise.com/wp-content/uploads/2018/08/ChartWorks-Gold-Specs-Net-Short-Sequ.-Combo-Buys-in-GLD-08-18-18.pdf
The problem I see for the precious metals: a rate-hiking Fed that places the US Dollar as the “best looking horse in the glue factory” together with the [apparently] unrelenting bull market in stocks.
Until that changes all rallies in gold are highly suspect.
That’s a very good point BBM. It could become even more stretched, and for a considerable period of time, although the 15 year gold and dollar cycles should win out in the end.