If you want to start a fight on Wall Street, ask traders about gold.
Since it peaked last October, holding gold has been painful – the precious metal is down more than 30% from its highs.
Gold bulls insist the pullback is temporary while bears are equally adamant that the precious metal was in a bubble.
One of the challenges so often cited with gold is that it's hard to value; that is metrics such as quarterly earnings, quality of management and profit margins just don't apply.
Therefore, in an attempt to determine if the current price is too high, too low or just right, many pros turn to technical analysis to see what chart patterns suggest. In the following analysis Cramer turned to Carley Garner, the co-founder of DeCarley Trading and author of A Trader's First Book on Commodities for insights.
Looking at the Commodity Futures Trading Commission's Commitments of Traders Report on gold, Garner is starting to see some bullish signs.
According to Garner, right now, large speculators—meaning big Wall Street players—are currently holding their smallest net long position in gold futures since 2009.
Collectively, they have a net position of about 43,000 futures contracts, which Garner views as a surprising because, since the turn of the last decade, institutional investors have often held net long positions of more than 200,000 contracts.
Plus, Garner says small speculators have also given up on gold in droves—they are holding just 423 contracts. She says that's next to nothing.
As noted above that's bullish because these figures suggest to Garner that the washout in gold is nearly complete. That is, the market may be reaching a point where most of the people who were going to sell, have sold.
And there are other bullish signs.