Post by Deleted on Aug 1, 2018 2:00:22 GMT
Cramer's charts suggest gold could be nearing a bottom
www.cnbc.com/video/2018/07/31/cramers-charts-suggest-gold-could-be-nearing-a-bottom.html
In recent weeks I have noted that positioning in Gold futures had become exceedingly positive and supportive of a rally that might lift Gold to over $1300. Gold is oversold and sentiment is overwhelmingly bearish. Since mid April Gold has declined from $1364 to $1212. The following headline is typical of what shows up after a market has already fallen by more than 10%.
Barrons article July 30 edition. Perfect headline for contrarians
If Gold rallies above $1260 it will begin to pressure those who are short. As they buy back their short positions, Gold will get a boost as the short positions are wound down.
Jim Welsh
This is an excerpt from the Macro Tides July 27 Weekly Technical Review.
Gold
The positioning in Gold just keeps getting more constructive as Large Speculators have the smallest long position since January 25, 2016 and Managed Money has the largest short position ever. Large Specs (green line middle panel) are trend followers who invariably have their largest long position at tops in Gold (July 2016) and smallest long position near a bottom as they did in January 2016. Managed Money (blue line bottom panel) has managed to have their largest short position just before nice rallies in Gold as in December 2015 and now. Hedge funds have more than doubled their short position in 5 weeks.
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