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You guys have heard this from me before about the news always fitting the latest price action which tells you Nothing because when it’s about to change direction…..they don’t ring a Bell!
Just saw the latest COT’s on Gold for this last Tuesday.
Here is an example of what I have talked about at market turning points.
https://thedailygold.com/a-bottom-in-gold-but-not-the-bottom/
Remember….at turning points all the news fits the current price as justification as to why it cant possibly be a low (or high) even though the market is screaming at you.
Why does this Always happen?
Because it needs to happen to change the trend.
The trend of selling.
Extremes in Sentiment are more than a word or a few words.
It is a condition.
What it defines at these extremes is a reflection of the amount of (in the case of a low), sellers left.
In other words….the sellers dry up.
It’s not that you will have buyers rush in.
The selling…for the most part becomes so weak that you can’t get prices to drop further.
So you get the type of action we have had since the Aug 16th timeframe.
And…..you get the pundits exclaiming that the fundamentals aren’t right… YET.
The news always fits the latest price action.
In other words.
The fact that selling is over means the fundamentals are about to change as well.
Why does this Always happen?
Because it needs to happen to change the trend.
The trend of selling.
Extremes in Sentiment are more than a word or a few words.
It is a condition.
What it defines at these extremes is a reflection of the amount of (in the case of a low), sellers left.
In other words….the sellers dry up.
It’s not that you will have buyers rush in.
The selling…for the most part becomes so weak that you can’t get prices to drop further.
So you get the type of action we have had since the Aug 16th timeframe.
The news always fits the latest price action.
In other words.
The fact that selling is over means the fundamentals are about to change as well.