from King World News
With pressure to the downside in both the gold and silver markets, below is an extremely important update on the gold market that was just issued by SentimenTrader.
From Jason Goepfert at SentimenTrader: “Optimism is leading out of the gold stocks. The Optimism Index on the Junior Gold Miners ETF (GDXJ) fell below 10 for the 6th time in the past year (see chart below).
[…] Each of the other times, it snapped back the next day by at least 2%. Even over the past 5 years when the fund was mostly in a persistent downtrend, it rallied over the next 1-2 days more than 60% of the time when the Optix fell below 10. So anything less from here will be an initial hint that the good run this year is running out of steam. A market that cannot rally from extreme short-term pessimism usually has bigger problems.”