{Note from Tim: What happened with GLD in the final hour today is sort of what I was hinting at with my earlier post, but here, with a different point of view, is the following………….)
Hi Slope, I just read Tim's post about the GLD breakout and the previous one that failed, so putting on my gold bug cap (modern, foil-free version made of hemp), I thought I would rebut. The below was posted on my blog a little while ago. Just FYI.
This is to be posted over at Tim Knight's Slope of Hope as a sort of rebuttal to this post by my favorite bear (not written sarcastically – the guy is thoughtful and fully aware of what it is to be contrarian).
In fact, being a bottom feeder, there is a part of me that is naturally anxious (and looking to take some profits, which I am mostly resisting until personal leading indicators trip up) in a way that I was not when Hulbert's HGNSI (Hulbert Gold Newsletter Sentiment Index) read only 9% bulls among gold forecasters, letter writers and gurus. Anybody have the latest Hulbert figures?
Right now, in the heat of the momo, it is important to look at the leading indicators and divergence, and to my eye, an important negative divergence is missing as compared to the last time gold broke out, per Tim's post.
Things can reverse at any time, especially from daily breakouts. But these are bullish Ascending Triangles which must be respected.
