Gold Tumbles Most Since December 2008
“This is just pure panic selling,” Frank McGhee, the head dealer at Integrated Brokerage Services in Chicago, said in a telephone interview. Before today, gold’s 14-day relative strength had been above 70 since Aug. 8, a signal to technical traders that prices are poised to fall.
Yes Frank, pure panic selling to unwind pure panic buying, which never, repeat never ends well. Rationalizations (like Bernanke, the world's not ending, the stock market needed to puff up its plumage for a while) don't matter. The only reason that matters is that gold got too frothy with too many stoopids knee jerking with the momo.
Here's how the sentiment structure looked as of yesterday before the reversal. Wanna bet it is heading in the other direction now?
Wash, rinse nice and clean and... repeat.
http://www.biiwii.com
http://www.biiwii.blogspot.com
“This is just pure panic selling,” Frank McGhee, the head dealer at Integrated Brokerage Services in Chicago, said in a telephone interview. Before today, gold’s 14-day relative strength had been above 70 since Aug. 8, a signal to technical traders that prices are poised to fall.
Yes Frank, pure panic selling to unwind pure panic buying, which never, repeat never ends well. Rationalizations (like Bernanke, the world's not ending, the stock market needed to puff up its plumage for a while) don't matter. The only reason that matters is that gold got too frothy with too many stoopids knee jerking with the momo.
Here's how the sentiment structure looked as of yesterday before the reversal. Wanna bet it is heading in the other direction now?
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| Courtesy Sentimentrader.com |
Wash, rinse nice and clean and... repeat.
http://www.biiwii.com
http://www.biiwii.blogspot.com
