Gold stock sentiment indicator. I like the pessimism but I totally disagree. I believe gold and more importantly gold stocks are on the way up. If I am wrong you can call me out after you have done all your dough. As it is the end of the month I will be reviewing all my charts for value/entry points. I will post some charts on HC in their specific threads. I have already mentioned two this morning. There is still a lot of paper out there that needs unwinding but I suspect the major players are already well positioned with cover or have rotated to the long side. Expect volatility. There could be one major bank on the wrong side of this market. Time will tell. . Why am I so happy? Being able to time the market is the ONLY skill that separates winners from losers. Having a good set of trading rules is insurance. Rationale and evidence (probably of my delusions and alcohol consumption) is in my chart. The AUD gold price bottomed on the 7th March 2021. There was a small but significant capitulation sell off in producers that bottomed on the 26th February. I have used the 7th March as my reference and turning point. The trend on my chart is at 45 degrees. Yesterday the indicator pulled back to validate what I believe to be the rising trend. Sentiment needs to turn up from here which now looks very likely. From this point on I anticipate the indicator will stay ABOVE this trend line with the occasional test of the trend which will generate entry points for you favourite gold stocks. You can expect another huge bear trap before the gold price peaks. To top it off, had a brief discussion last night with a friend about the AUD which appears to be in a Wyckoff Distribution pattern for a sell off back to around 71c. Action beginning soon. For those who have played this market for some time will understand that prices are generally slow to come off bottoms (until they aren't) why sentiment is in the pits. Most of the major stock price moves happen towards the end of the bull cycle. In the meantime the way the charts move will set up target prices that I expect to take profit at on the way up. Don't forget to look at A$POG occasionally. . . Now that it looks like I have reference points for the trend, I will include it on my chart when appropriate. Here is the sentiment indicator. .
