Wednesday, June 23, 2010

Mark Hulbert Says Gold Timers Cautious

In a Marketwatch commentary, Hulbert points out that sentiment amongst gold timers hardly budged when gold made its record high on Monday. Current readings are fairly low.
It's really quite amazing that the gold timers today aren't more bullish. During last Friday's trading session, when bullion broke out to a new all-time high, the HGNSI didn't budge. And it rose only 7 percentage points as gold briefly traded at an even higher level on Monday.

Just imagine how euphoric stock market investors would become if the Dow Jones Industrial Average were to have just traded above its previous all-time high of 14,165. There'd be dancing in the streets.
Earlier, he noted that some technicians saw Monday's plummet as a one-day reversal: a pattern that's supposed to bode ill for the asset in question. So far this morning, gold has co-operated with that pattern: it not only fell below $1,240 in early regular trading but also dropped below $1,230. The $1,220-$1,240 range has been re-established.

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