Gold bulls remain mostly confident and defiant after two weeks of losses. This isn't good news for bulls. It means the odds favor lower prices.
What might be the best scenario for long term gold bulls is an even harder shake out that gets some of newsletter/hotline types to jump off the bandwagon. When the wagon has so many folks on board it is difficult to move higher, even more difficult to make new highs.
Sometimes the secular trend is so strong that the majority can be right and stay right for an extended period of time. That said, sentiment can be a powerful indicator, one of the best for calling turns.
Long SPY (expiring 12/18)
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