The 21-day moving average for sentiment in gold just came off its most pessimistic level in history, and the GDX has seen a decline that has only happened 3 times in the past decade. For bears trying to squeeze all of the juice out of this trade, they may be playing with fire here. I applaud the bears who have stayed short the past couple months, but believe the easy money has been made on the short side. Adding to shorts and doubling down on short positions at these levels makes little sense to me.
To read more, you’re welcome to follow this link to the Seeking Alpha article written by Mr. Dart
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