Sentiment in each of these markets is as lopsided as it ever gets, with over 20 gold bulls for every bear and that many euro bears for every bull. Levels have remained extreme for 2-3 weeks now with no relief, so be on the lookout for violent reversals.
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Huge call that paid off handsomely, at least for yesterday. Congratulations, Mike! Keep up the great work and great posts… and as always as traders keep down the ego :p (LOL, I know you never brag about your great calls)
For the short-term, do you think gold is quite oversold and due for at least quite a strong bounce? It’s down around 7-8% in less than 1 week and it’s closing to its 50 DMA support. It’s also about to meet its shoulder support of the Inverse H&S breakout. All these at around GLD 113 area. Daily RSI is also at important support at the 50 level – a level that provided a launchpad for great rebounds & rallies recently, e.g. Oct 2009 & later March 2010 bounces. Doji daily candle, too. The other day, I think it was last weekend, I also read at ZH that short interest on gold futures are at historic highs at around the all-time high breakout area. As you may guess, I’m itching to get in :p.