On a day when the price of gold market saw a $40 trading range, and oil tumbled nearly $2, here is the big surprise.
When asked by one of his readers: “Today’s stupid question…Why aren’t miners surging today?” Bill Fleckenstein simply responded: “To keep you worried, we could have this discussion every other day.”
King World News note: To put things in perspective, sometimes it is helpful to take a step back and take a look at the big picture. I went back and took a look at bullish sentiment for the gold market and it topped at a staggering 93 percent on August 22, 2011, with gold essentially trading at the all-time highs. If you contrast that to today, the total number of bulls now stands at 59 percent. If you look at an area where sentiment for gold was extremely bearish, on July 22, 2015, bullish sentiment for gold was all the way down to just 28 percent bulls.
I also went back to look at bullish sentiment for the silver market and it topped out at a jaw-dropping 97 percent bulls on April 11, 2011. To contrast that to today, the total number of bulls now stands at only 47 percent. If you look at an area where sentiment for silver was extremely bearish, on December 24, 2014, bullish sentiment for silver had collapsed all the way down to only 21 percent bulls.
What does it all mean?
What this means is that although sentiment has recovered a bit from the extreme bearish sentiment levels for both gold and silver, both metals are nowhere near the kind of optimism we saw at the euphoric peaks in 2011. In fact, bullish sentiment for the silver market is still a remarkable 50 percent lower today than it was at the April, 2011 peak.
The bottom line is that we are still in the very early stages of the next leg of the secular bull market advance for both gold and silver. Yes, there will be some volatility from time to time, where prices retreat or consolidate, but over the medium- to long-term the wind is now at the back of the bulls and the overall directional trend will remain to the upside for many years to come.
But even with the recent positive action in the gold and silver markets, what some of the gold and silver community are struggling with at this point is exercising patience. Some have been selling positions and moving to the sidelines, waiting for the next shoe to drop. While there will be pullbacks, KWN readers around the world need to understand that you don’t want to give up your position at the beginning of a new bull market.
Remember the lessons of Jesse Livermore (see below).
“After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: it never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!
It is no trick at all to be right on the market. I’ve known many [traders] who were right at exactly the right time, and began buying or selling stocks when prices were at the very level that should show the greatest profit. And their experience invariably matched mine; that is, they made no real money out of it. [Traders] who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make the big money.” — Jesse Livermore
The bottom line is KWN readers need to listen to the wisdom of Jesse Livermore and exercise patience. Do not give up your positions in this new gold bull market by trying to get too cute — trading in and out of the metals and the mining stocks. Again, pullbacks will come and sometimes they will be quite dramatic, but trying to time those perfectly can leave people on the sidelines during major advances, and that would probably be more mentally taxing than just sitting through the pullbacks. Remember, in a bull market the big surprises always happen on the upside.
***KWN released an absolutely jaw-dropping interview discussing the gold and silver markets with the man who advises the most prominent sovereign wealth funds, pension funds, hedge funds, and institutional funds in the world and he discusses the gold and silver markets, coming chaos and much more! To listen CLICK HERE OR ON THE IMAGE BELOW.
***Also just released: Legendary Short Seller Warns Gold May Surge $100 – $150 Violently And In A Short Space Of Time CLICK HERE.
***To hear what John Embry is doing with his own money right now as well as more about the coming plunge in the stock markets, surge in the price of gold, silver, and the shares, CLICK HERE OR ON THE IMAGE BELOW.