Gold stock sentiment indicator.
I have been hearing the death knell for the USD for some time.
In this turbulent time, I would not be so quick to dismiss the USD as there still needs to be a medium of exchange as money moves around.
Hard assets that retain value will be highly desirable.
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Pretty cool how the stocks have been leading the gold price coming out of this bottom.
The pressure valve has finally gone off.
The trend and cycle will ALWAYS re-assert itself.
There will be profit taking at the top of these runs.
Target prices for many of my stocks will be determined by the strength of the current run as they break out of consolidation.
Twelve months of historical sentiment indicator data will give you an idea of just how volatile this sector is going to be.
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The leading indicator has just hit 70%.
For an idea of what this means - from the 1/1/2015 it had never hit 70% till 14/4/2020. This is the fourth time it has hit 70%.
Each time has seen a >10% reversal the following day, I suspect due to profit taking.
But then again, I have never seen price suppression like what has occurred over the last month.
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Sentiment has turned with the overall trend to the upside though it may be difficult to follow given the degree of volatility I expect to see.
I have some idea of where I would expect sentiment to be at any particular time.
Right now it is almost stratospheric therefore expect the heat to come out within a week or so.
With a bit of luck, we may even see a pause which will allow better stocks to play catch up.
Here is the indicator.
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