Thursday, February 19, 2009

Golden sentiment

Granted these things are hard to quantify but it seems to me that the prevailing sentiment right now towards gold is that it is overbought and due for a correction.

I'm not really seeing the panic buying that typifies most tops in gold.

I've pointed out before that overbought can get a heck of a lot more overbought in a powerful bull market.

All those traders that sold their silver because it was overbought only managed to miss a 30+% move.

If we do get a correction, great, I'll be able to put the rest of my capital to work. But selling simply because a bull market is overbought? No thank you!