More on Gold and Euro

Babak over at Trader's Narrative has published an interesting post about both the Euro and Gold, which have been the focus on several of my latest posts:

On the Euro:

Not surprisingly then, last week the DSI for the Euro plumbed depths not seen for more than 10 years when it hit 2%. That means that a paltry 2% of retail investors have confidence in the Euro. That’s a lot of skepticism, bordering on outright paranoia. I’ll give you that the Euro has crashed to levels not seen since early 2006. But when the Euro made a multi-year low in late 2005, the corresponding DSI for the currency was 6% (mid-November 2005). That was still 3 times as high as now and the Euro is actually trading higher now than it was then.

On Gold:

The Daily Sentiment Index, from trade-futures.com, however is showing an extremely high level of bullishness for gold. At last Wednesday’s high, the DSI for gold reached 98% - implying that basically everyone agrees that gold is going higher in price. This level is not only extremely high by its own regard, it is also the highest DSI reading for gold in the history of this indicator reaching back to 1987!
[...]
The bullish percent index for the Gold Miners Index is 77.42%. That is relatively high compared to the historical averages but it isn’t yet at an extreme that would correspond to market tops.

More comments and nice charts on the original post.