Sentiment and the Options Market: Golden Disrespect

Quick note as we head into the bell of one of the more fascinating sessions in a while, what with all of the cross-currents between asset classes.

The buy volume in gold and her miners is truly something to behold into this breakout. I would actually put in on par with the August 1982 breakout in equities as a group, insofar as the amount of doubt and reticence I am seeing by many towards the sustainability of this move. I cannot blame most for doubting the move in gold and the miners, though. After all, for the last eighteen months or so it has been back to laughingstock status for gold bugs, as the growth/crypto crowd cheered on every rally in their names while mocking gold's every fade just when it looked ripe to resume a long-term uptrend. 

But with call options premiums looking rather cheap for most gold miners even after today's move, the sentiment picture remains skeptical. 

Newmont Mining, below on its daily chart, is a name I remain long with Members. It is one of the larger cap miners. Note the buy volume surge on the bottom pane of its chart for today, nearly doubling most recent sessions' volume. 

I thought last summer could be the summer of gold, but I was wrong and quickly had to abandon ship. 

This time around, we have inflation at the forefront of major issues but also a Fed which is only reluctantly fighting it so far, if at all. Gold seems like a logical beneficiary to all of this, and given the price, volume, sentiment setup, I like its chances this time around for The Real McCoy.