Bottom is in GDX and all miners were trashed so no one wants them this is the classic time to buy even Blievam
plays a part in this see the full seeking alpha article under GDX headlines
PS: the Blees rating mus have been created for Blievam lol !
Every once in a while, the stars and planets align. To those who notice it, it's an amazing thing. Well, the stars and planets are aligning once again for gold in a way that I do not think will happen again, at least not in my lifetime.
The stars, as I see them, are the following:
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1) Buying on Weakness - February 28, marked the largest buying on weakness numbers in GLD that I have ever seen at over $88M in net money inflows. Buying on weakness is a sign that institutional money is grabbing up shares from panicked sellers. It is usually large at bottoms. To say $88M is large is an understatement.
2) The Blees Rating - On the COT (Commitment of Traders) report, the Blees rating has reached a 99 out of maximum 100 bullishness rating. Take a look at the charts at the link above, and you'll see that every single time the Blees rating reached these levels, a bottom closely followed.
3) Extreme negative sentiment - according to Sentimentrader, sentiment has reached lows not even seen during gold's 2008 bottom.
(click to enlarge)
3) Capitulation Volume - These two charts are perhaps the most revealing. The first one shows the GLD from 2005 to the present. There are four points worthy of attention here.
Area A depicted blow shows gold's two and a half year stagnation from mid 2006 until the end of 2008. The bull can work off a run for a long time until the next leg up.
Area B shows that not even a year and a half has passed since gold began to stagnate last in September 2011.
Most importantly, notice the volume discrepancies underneath areas A and B on the Google chart below. From the 2006 highs until just before gold's bottom in 2008, trading volume was a trickle. Then came