Gold's overall trend, revealed by trends of price, leverage, and time, are defined and discussed in The Matrix for subscribers.
Gold Sentiment has collapsed to the lowest since the 2018 Bottom.— Macro Charts (@MacroCharts) March 18, 2021
Price has formed a huge 7-Month *potential* ABC Bull Flag into critical support.
Positioning has been wiped out (charts later this week).
Look for DSI to turn up soon – maybe the initial stages of a big rally. pic.twitter.com/cRpA3OXKTd
Frankly, the overwhelming observation of bullishness, which also includes silence about the potential for weakness, ahead of the "big sentiment collapse" in gold and lesser degree in silver is a slap in the face to sophisticated trading discipline that understands the complex nature of trends, cycles, and energy. If today's bottom callers couldn't describe the bearish shift taking place in October 2020, i.e. the setup we discussed would drive a frustration phase for gold and silver, how the heck do they have credibility to call a bullish one in March 2021? We've been watching a steady diet of bottom calls for months. Nearly all of these calls have been focused solely on price; these calls have been dead wrong. Corrections are a function of price AND time. I often warn Bitcoin investors not to follow narratives when trading/investing, but in many instances their beliefs are more contained than gold investors.
The "frustration" phase, which should have been described as early as October 2020, has been long and powerful. Frustration phases represent periods in which price struggles to the upside at best, and collapses to the downside at worst. Gold's energy, strong and stubbornly persistent to the dismay of most subscribers interested in gold, has collapsed price. As past Review (written and videos) clearly stated, the odds that dissipation of the bearish energy build would flip the primary trend were fairly high. Gold bugs, which represent a decent portion of gold investors, are manic traders. They love gold at tops, and hate it at bottom. It's the hate that's flipping gold's primary trend in March.
The frustration phase that may flip primary trend flip for a few months has not ended. Anyone following the squiggly lines depicting a hypothetical bottom should do so at their own risk. I've done this long enough to know squiggly lines are dangerous. They provide a false illusion of safety and control. A bottom based on the dissipation of energy and passage of time is coming, but we have no idea how it's going to look. Sure, price could follow the squiggly line or similar, but it also could crash below the recent swing low as DI spikes to 100%
Let's take a close look at gold's DI. Subscribers, please read.
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