Someday, over the Rainbow,
investor1.com
Friday, May 21, 1999: The overall current outlook for gold and for non-North American gold shares, which closely
follow the gold price, has risen from VERY STRONGLY BULLISH to EXTREMELY BULLISH. The overall outlook
for North American gold shares has improved from STRONGLY BULLISH to VERY STRONGLY BULLISH. The
traders' commitments for gold show a net short speculator position in excess of 80 thousand contracts. Put buying on
gold shares has run rampant, with numerous small lots trading at the full inflated asking price, indicating that even
truck drivers don't want to miss out on the "certain upcoming collapse" in gold (as though it hadn't already
collapsed!). In a Friday Bridge News piece of analysis on gold ("Gold bugs in hiding at 20-year lows", 11:49 a.m., by
Kira McCaffrey Brecht), there was a unanimous strongly bearish consensus, without a single positive voice of bullish
dissent. The Journal of Commerce commodities index continues to rally. Even George Soros has proclaimed that the
recession in the third world is over; this will surely lead to a continued rebound in commodities prices as over a billion
people can afford to demand basic goods and services.
Friday, May 21, 1999: The traders' commitments indicator for gold has risen sharply from STRONGLY BULLISH to
EXTREMELY BULLISH, as speculators are net short more than 80 thousand contracts, with a ratio of well over 10:1
short to long. This also represents an unusually sharp improvement over a two-week period. |
