
A quick update on precious metals today. We didn’t get a counter trend bounce signal from Twitter sentiment for any of the precious metals before the current rally. This was because we didn’t see good positive divergences from price before the move started. Now that the metals are rallying we’re seeing confirmation of the move from Twitter sentiment that is painting higher lows and higher highs. Sentiment isn’t extremely over extended yet, but is getting near levels that might suggest a pull back is necessary before the metals can move higher. Below are charts of GLD, GDX, and Randgold Resources (GOLD). Notice that sentiment for Randgold is starting to paint a negative divergence from price as it nears the underside of the 200 day moving average. This is another indication that a pull back in precious metals may occur. A break of the uptrend in smoothed sentiment for Randgold would create an official sell signal for the stock (or consolidation warning if you believe it is in an uptrend). I’ll
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