Barron's Bearish On Gold; Why That's A Bullish Development
(Kitco News) - There's an old trading adage that says when the major, mainstream business media finally catches wind of a major market move and then reports on it, that market move has then very likely run its course. Thursday, a Barron's report on Dow Jones Newswires entitled "Gold Could Be in a Prolonged Tailspin" suggested the yellow metal's price will not recover any time soon.
In fact, the Barrons reporter even suggested investors sell (go short) December Comex gold futures, or even sell call options on SPDR Gold Shares.
Boy howdy, when a news reporter starts doling out trading advice to sell gold, it's an even better bet that trade won't pan out.
So on a day when gold prices were down again and are hovering near 12-month lows, the bearish proclamation and selling advice from Barron's is a classic case of a market whose price trend is about to change.