Everybody Loves Gold

Yes, I know everybody loves gold. In fact, everybody also loves oil, and they love stocks. It seems the world is celebrating an Obama love fest. I’ll deal with the other at another time, but for now, “It’s All About Gold.” (Hmmmm, catchy title. I wonder if it has a future somewhere. But, I digress.)

The daily sentiment index (DSI) for gold measures gold bulls vs. gold bears. For ten consecutive trading days, the index has been above 90%. A comparable streak over the past twenty-two years (time of measurement) was 12/2/04, when the DSI was above 90% for twenty consecutive days, made a high, and then gold promptly declined 10%. Yesterday, the index hit an unprecedented 97%, indicating the potential for a much steeper gold price decline.

In 1929, My grandfather knew the stock market top was in when his shoeshine boy was giving him stock tips. Could the same be occurring again as the “Friendly’s” restaurant waitresses were overheard discussing using their tips to buy gold coins? Just a thought.

Till next time,

Bill


>>>>>>>>>>>>>>>>>>>>>

A disclaimer: None of the content published on BillTatro.com constitutes a recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. None of the information providers or their affiliates will advise you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. To the extent any of the content published as part of BillTatro.com may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.