The “they” are the gold timers I monitor. The last time I wrote about them, just one week ago, I wrote that they were in denial, having for the most part stubbornly held on to their bullishness despite a breathtaking drop that caused an ounce of bullion to lose nearly one hundred dollars.
That they have finally rushed for the exits increases the likelihood that some sort of trading bottom has been formed in the gold market.
Consider the average recommended gold market exposure among a subset of the gold market timers tracked by the Hulbert Financial Digest (as measured by the Hulbert Gold Newsletter Sentiment Index, or HGNSI). Just a week ago this average stood at 73.7%, one of the highest readings for this index in several years. Today, in contrast, it stands at just 7.0%.