Hulbert’s HGNSI joins other sentiment-based positive indicators for Gold
Just as ole’ Jim Cramer above signaled an imminent short-term rally recently in the stock market, bleak views coming out of the gold bug “community” are reliable contrary indicators. The Hulbert Gold Newsletter Sentiment Index (HGNSI) is out and it is fully bullish on a contrary basis as it shows gold newsletter writers in full retreat.
But first…
We have noted that Gold’s CoT has been improving (CotBase)…
And noting that Gold and Bonds are contrarian bullish amid the inflated party atmosphere (Sentimentrader)…
We have noted that Men Who Stare at Charts in the Gold “Community” have found it necessary to apologetically deliver the bearish technical news…
And today, Hulbert’s HGNSI checks in to blow the Gloom-o-Meter to a new milestone for the correction (The Street)…
Sentiment has been contrarian positive for a long while now, and it is a lousy timer. But the conditions for the next gold rally are falling into place, one by one.
Repeat after me and never forget this. The most ardent gold bugs, the most promotional gold bugs, the most sanctimonious, lecturing gold bugs are always going to have their sentiment profiles fixed before a correction ends. Or at least their victims are going to have their sentiment fully cleaned out.
Oh and the next time you see people bull-horning and lecturing at a dynamic gold price high, you’ll want to have caution as we did last August as Buffett bought a gold stock!
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