I believe there are 30 gold stocks in the BPGDM, so a reading of 3.33 means that 1 of the 30 stocks is in bullish mode. I'd say that was oversold and a pretty good risk /reward entry point.

When readings get this oversold, we usually get a bounce, but there is also a small chance of a crash in the sector. That's why I'm playing this with ETFs - in case of the latter, I can still get out.