Precious Metals: Over-Bullishness To Be Fixed
You see, Things 1, 2 & 3 below always were going to matter to the over-bullish sector sooner or just a little later. It was sooner. I feel NFTRH did its job well in preparing people for it. When we began managing the rally, the Gold Miners were the greenest of the green. Now, not so much.
Thing 1: Sentiment skyrocketed to way over bullish.
Courtesy of Sentimentrader
Thing 2: Gold’s CoT data have been degrading for a while now.
Thing 3: Silver’s, too.
But Thing 2 is actually constructive on its big picture view. Here is the view of gold hedgers (commercials) recently increasing shorts within a longer-term trend of reducing them.
Courtesy of Sentimentrader.com
We had prepared for the correction and this morning, also for some "buying op" levels assuming a correction had begun. That is because I believe the elements are in place for higher prices after the clean out.
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