Gold stock sentiment indicator.
The current fall in sentiment is very different to previous spikes lower, which all recovered quickly.
I learn as I go as current market activity has not been observed over the last 6 years.
Previous spikes lower were buy the dip and allowed short term, quite profitable trades.
This includes the March capitulation though producers took a while to recover.
Juniors broke out everywhere after that particular event.
What I am seeing is clearly a more sustained fall, dropping a few % every day.
This fall is nowhere near as steep as previous dips. Less vertical and more sustained.
This is a retracement back to trend, not a bear market (in my view).
This down cycle has prevailed for far longer than any previous cycle.
Not sure what type of bottoming action we will see this time around. Could be another spike with a reversal on the same day. Will have to wait and see.
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Reasonablearticle on gold price and premiums on physical purchases are still high (around10-15% on silver).
The articlegives an idea of what some analysts are expecting. Not unreasonable.
https://goldseek.com/article/gold-retested-1800-we-forecasted-over-two-months-ago-silver-eagle-sales-top-4-million
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As previously mentioned, there are a few key indicators to watch for. Spot v futures, EFP, etc.
While they may or may not manifest, any one of them may show that the lows are unsustainable.
Unless I see broken trends all over the place, this bull is alive and well.
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Hopefully during the next cycle I will be all over it.
Data from the indicator is going to be run through and algo. Should be interesting.
Here is the indicator.
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