Whether lucky or good, Oppenheimer's Carter Worth was accurate in calling for a drop in gold back in January of 2013. From his note at the time: "For those without the time or inclination to read past the first page (we're told by the marketing experts that many people don't read past the first page of most research reports) here is the summary, in one word, of today's edition of "Money in Motion" focusing on Gold Bullion: SELL."
Fast forward to today, when the technician pulls a U-Turn, and says that "at this time, we believe gold and gold miners represent good risk/reward. Indeed, the recent extreme weakness is judged to be the reciprocal or correlative of the extreme strength witnessed in the summer of 2011. The "despair" relating to gold now is as palpable as "euphoria" then."
And always one with a witty turn of the phrase, Worth summarizes his shift in sentiment as follows: "The bottom line, by our work, is this: at this time it is right to cover all shorts in gold and gold miners… and we would look for opportunities on the long side.... The charts of the individual equities are atrocious. And that is the circumstance that compels today's report. The stocks are judged to be "so bad, that they're good"."
Worth's short-term target, based on charts and squiggles: $1,395.
[2]
Some more squiggles...
[3]
And even more squiggles:
[4]
There are many more squiggles in the full report, leading Worth to also give a "buy" reco on the following miners:
[5]
Of course, as we showed over the weekend [6]when we demonstrated the unprecedented technical sentiment dislocations behind gold with a stunning amount of gross gold shorts, should the long-overdue gold squeeze indeed take place, then $1395 will be merely the first stop.
[7]