Loading ...Fantastic COT Numbers For A Gold Bull
If we’re in a gold bull market, these COT numbers (causing the ‘jaws’ to open) are fantastic news, and exactly what happened multiple times between 2000 and 2011. Don’t listen to anyone who says that such ‘extreme’ readings are a problem. They’re not. Yes, price may well back off as they close up a little from time to time, but in a prolonged bull run, the tendency is for the ‘jaws’ to remain wide open for longer periods of time, allowing price to surge higher.
Yes, I concur northstar. Best to buy and hold for now. It is often the case in a rising precious metal market that an RGLD makes a new high on the same day that an iag tanks. Past experience has me buying the ones that tank in this environment. trekker.
NorthStar, Do you c 1600 as a major or minor resistance.?
No Doubt !!
I had $1560-$1625 as a target for this move, followed by a possible lengthy correction. My 3 possible scenarios were posted last week though, and, depending on just what’s going on behind the scenes we may consolidate for some time there, or just slice clean through it. So far, we’ve been following the ‘reverse symmetry’ scenario, which would see us move to $1800 in the next 6 months or so.
Thank you. I looked back a few pages on goldtadise and see your scenario number 2 which shows the answer. Why do you think it will require a lengthy consolidation? Why not just a month or two so miners can start believing the move and adjust up?
I mean “lengthy correction”. Does that mean we could go to 1250 then?
Exactly
COTs are a sign of interest in the PMs
Northstar, you are an invaluable resource. I’ve been tempted to unload a couple of positions that are way into the green stuff. Not big enough to sell half, would have to sell the whole lot. But your posts keep persuading me to sit tight. Which I am doing. Even added one on Friday.
Just busting a few myths on the way Silverboom. There will be a sizeable correction in due course, but apart from the big mid cycle correction, I don’t see the point in trying to jump in and out – you often end up getting the timing wrong and losing out unless you’re some kind of genius (I’ve lost count of how many times the cycle guys change their counts in light of the fact price isn’t doing what it was meant to). It’s not easy to hold tight, but in an impulsive bull move out of a 6 year base, I think its the wisest thing to do.
A picture is worth a thousand words and this is thousands of words I no longer need to have with people that throw the COT data at me. Thanks NS!
A. Maximus