Over the past three weeks we have had two rare buy signals on gold. Previous buy signals have returned 5-10% over the next month. The signal is a measure of selling or buying exhaustion. The returns are very good, and while not every single signal works, the odds are very good at over 75%.
Investors are overwhelmingly short gold, and are now the most short they’ve been in the last ten years. Any rally should unleash a lot of short covering. Whenever positioning has been this stretched, gold has rallied strongly over the next two months.
Nessun commento:
Posta un commento