Re, "Got Gold?"
Yup! Adding lots more real soon now.
thestreet.com
One of the key signs they've found is in the bullish consensus on gold, which stood at 16% Monday, just a bit higher than the 12-month low of 13%, notes Richard Ishida, president of Market Vane.
Jay Shartsis, options strategist at R.F. Lafferty in New York, notes that the 13% bullish consensus mark on gold preceded a short rally in the sector last year. "The pessimism is interesting," Shartsis says, adding that the risk in buying these stocks is very low.
The XAU put/call ratio, which has spent about the last year around the 40 to 50 level, on Tuesday was around 140, showing that 14 puts traded for every one call, notes Shartsis. Even compared with the overall equity put/call ratio during market swoons -- that measure hit 77 during one of those awful April days -- that number is astounding in its pessimism.
That level, however, still isn't as high as the 190 reading that it hit before the aforementioned 1999 rally, Shartsis says. |
