-- Published: Wednesday, 23 November 2016 | Print | Disqus
By Graham Summers
If you’re serious about making money from investing in the financial markets, you need to be able to read the crowd… and go against it.
Let me give you an example… Currently one of the consensus views is that the Gold rally is over and gold is dead as an investment.
Right off the bat, you know this sentiment is at an extreme. Despite its recent sell-off, Gold is still crushing stocks in terms of performance year to date.
This is a massive “tell”: people believe Gold is doing very badly when in reality it’s nearly doubling stocks’ performance year to date.
Another “tell” is technical in nature. Investor sentiment is acting as though Gold is dead… when in reality Gold is both oversold and about to stage a bullish crossover (when the 50-wma breaks above the 200-wma).
Put another way, Gold is due for a snapback bounce at the very least… at the exact same time that it’s about to stage a massively bullish long-term signal.
This is a textbook recipe for a “rip your face off” rally.
Again, with Gold today we’ve got:
1) Terrible sentiment.
2) An oversold security.
3) A massively bullish long-term buy signal about to trigger.
You can ignore this all you like. But all of the above suggest Gold will be much higher in the coming weeks.
Chief Market Strategist
Phoenix Capital Research
| Digg This Article
-- Published: Wednesday, 23 November 2016 | E-Mail | Print | Source: GoldSeek.com