It’s Still Too Soon to Buy Gold: Nenner
If you're looking to buy the dip on gold, Charles Nenner says an opportunity might be in the offing but the rally won't last.
"The cycle is still down," Nenner says in the attached video, dismissing the idea that the yellow metal is making more than a temporary low. Nenner works with price cycles and time frames. From that perspective we're getting close to what he sees as a late-April bounce that can be traded, but he isn't going to make a call in the middle of a downward move. You just have to wait.
Nenner also incorporates emotion into his trading. Towards that end, he warns investors not to seek justification for staying long with a hope for better days. Nenner says the human instinct is to hold on far too long. He says he's been warning gold bugs to sell for the last $500 price slide, but the advice went largely unheeded.
Related: Gold Getting Hammered- Watch $1,340, Says Najarian
"It's very hard for people to get educated against staying in for the long run," Nenner notes. Human emotion being what it is, the instinct is to hang onto to their buy and hold thesis until the panic hits. Now that gold has had 1/3 of its value lopped off, those long-term players are getting scared out of their positions.
"In the end you become so emotional that you're going to sell out with a big loss," he warns.
Related: Commodities Crushed! Don't Blame China
Those who've been suffering through sleepless nights over their losses in gold of late need to remember the feeling before they start buying dip or confusing what Nenner says will be an oversold bounce with the start of a new bull market.
