Barron's Bearish On Gold; Why That's A Bullish Development
(Kitco News) - There's an old trading adage that says when the major,mainstream business media finally catches wind of a major market move and thenreports on it, that market move has then very likely run its course. Thursday,a Barron's report on Dow Jones Newswires entitled "Gold Could Be in aProlonged Tailspin" suggested the yellow metal's price will not recoverany time soon.
In fact, the Barrons reporter even suggested investorssell (go short) December Comex gold futures, or even sell call options on SPDRGold Shares.
Boy howdy, when a news reporter starts doling out tradingadvice to sell gold, it's an even better bet that trade won't pan out.
So on a day when gold prices were down again and arehovering near 12-month lows, the bearish proclamation and selling advice fromBarron's is a classic case of a market whose price trend is about to change.
By Jim WyckoffFor Kitco News
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jwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.