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1615! Buying opportunity coming up?

it is there now.

I'm not buying - but sometimes these opening gaps down in NY, get bought

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http://news.goldseek.com/GoldSeek/1360937700.php

 

Is Gold Becoming a Risk-off Asset?

Lately we’ve been writing about the negative correlation between the equity market and the precious metals market. This phenomenon has been in place since summer 2011 and has re emerged in the past few months. Since November 23, the S&P 500 is up 8% while the gold shares are down 14%, Silver has lost 11% and Gold 7%. For those who have studied history this should not come as a total surprise. From 1972 to 1977 and November 2000 to July 2002, precious metals and the equity market trended in opposite directions. We’ve postulated that precious metals and the mining shares won’t begin a new bull phase until the cyclical bull market in US equities ends. We don’t expect that to happen immediately but there are some important signals beneath the surface (with the safe-havens) that we should direct our attention to.

 

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The bottom line is the action in precious metals, commodities and the US$ is signaling a warning for the equity market. The bond market needs to confirm this warning and if it does it could be the catalyst for a selloff in equities. Keep in mind, the S&P 500 is approaching strong long-term resistance while in a state of euphoric sentiment.

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Sentiment on gold has dropped markedly with its latest push lower. Sentiment is under 42% for only the 2nd week in more than a decade.

 

(Although prior to 2001 sentiment would often go down as low as 20%)

 

Info from sentimentrader.

 

It's consistent with "new dynamics". Extremes in sentiment, when they do not produce a bounceback, tend to result in a "new norm".

The Gold bulls should be VERY concerned right now.

 

Well, the other week where sentiment was this low was 2005, and clearly the bull market continued.

 

 

Chart from www.sentimentrader.com;

 

goldsentiment_zpsb27b01ad.png

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These are my forecasts, valid for the next 3 months (just for educational purposes, and not investment advice).

GOLD$ - Neutral stance, until it closes weekly under $1490/Toz I would be bearish, above $1810/Toz I would be bullish.

GOLD£ - Neutral stance, until it closes weekly under £990/Toz I would be bearish, above £1100/Toz I would be bullish.

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Van is right.

The Bull market sentiment is endangered by what we are seeing.

Still, there ought to be very strong support at $1500-1550.

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