Famous stockbroker Jim Cramer, host of CNBC’s “Mad Money” program, thinks that gold is ready to recover. Cramer also came up with the sale of the leading altcoin Ethereum (ETH). Here are Cramer’s golden comments…
Ethereum seller Cramer drew attention to gold
Jim Cramer, who draws attention with his comments on cryptocurrencies from time to time, as we have also reported as Kriptokoin.com, commented on gold this time. He was previously known to have investments in BTC and various altcoins. Cramer announced that he sold ETH in the past months. Now, the Mad Money presenter has drawn attention to the current gold charts. The expert name used the following expressions:
The charts, as interpreted by the legendary Larry Williams, show the general public giving up gold en masse. This is the perfect intro time to make some purchases.
Gold futures faced pressure from a stronger U.S. dollar and Treasury yields after Fed leaders’ hawkish comments on inflation the day before lowered the metal. Gold is considered a safe investment. It often attracts investors during times of economic and geopolitical turmoil. Cramer began his explanation of Williams’ analysis by examining the weekly movement of gold going back to 2014, paired with trader report data from the US Commodity Futures Trading Commission (CFTC).
The CFTC monitors the futures positions of small speculators, large speculators such as money managers, and commercial hedgers, which include commodity-operated companies. According to Williams, when small speculators get too high on gold, it’s usually a sign that it’s about to top out. Conversely, gold tends to be near the bottom when small speculators are too bearish.
Big and small investors come face to face
Commitment data reveals that small speculators have held the least amount of longs since May 2019. May 2019 marks the time frame just before a major gold rally. It is also worth noting that small speculators were in the largest net long position in four years during gold’s last peak in March. This does not mean that investors should always do the opposite of what small speculators do. But according to Cramer, this is a sign that gold may win soon. Cramer uses the following expressions:
That would be so silly. But in the last 9 years, when net longs in gold have been this low, the real metal has soared. All of the best selling points came when they had the biggest long positions.
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