Richard Russell, the long-time chartist behind the Dow Theory Letters, has been a gold bull for as long as we can remember.
In his latest commentary, he notes that coverage of gold’s recent decline has been much more robust than any coverage of its ascent.
Indeed, in recent days gold has seen a decent bounce, even as the media coverage continues to be overwhelmingly bearish.
Here’s Russell via King World News:
I thought it significant that when gold was declining, there was no end of publicity about the “dreadful action” of gold. But when the gold miners surged on Friday — not a word appeared about the bullish action of gold and the gold miners, NOT a word!
If true, that gold has seen its lows, then adventurous subscribers might buy some out-of-the money gold calls. If gold and silver head higher, you’ll make money with the calls, and all you can lose is the original price of the calls you buy. Check with your broker.
Gold was up 32.00 to 1255.70 (on Monday) and the whole gold universe closed higher. Gold is so hated that it could rally over $1500, and nobody would notice it. Sentiment against gold is so bearish that I thought gold could have struck a capitulation low last week. Another bearish piece in today’s issue of USA Today. Talk about rising on a stairway of hatred, you’re seeing it now in gold!”
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