Monday, December 21, 2009

Bearish Sentiment in Precious Metals

I like to look at various sentiment indicators from the investing public.  One of them is TheStreet.com's RealMoney Barometer.  It includes 3 questions.  This week's results tell me 2 important things.  Investors are bullish.  Also, a large number of traders are bearish on precious metals.  This is akin to being bearish on gold, and to a large extent, bullish on the dollar.  The correlation between gold and the dollar is very high these days.  This adds another piece to my belief that the euro is oversold, and needs to be bought this week.  I believe it will be higher by December 31st.

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