ETF Daily News
Dominique de Kevelioc de Bailleul: Short positions positioned by the smart money stand at the lowest level since the start of gold‘s near-double in price and silver‘s near-triple price surge of 2009.
In the most recent release of the Commitment of Traders (COT) report, the data show commercial traders now expect gold and silver to stop falling. But more to the point, historical data suggest that when commercial traders, the ‘smart money’, cuts back on their short positions to low levels on a relative basis, precious metals prices have risen, and sometimes, and most recently, in a violently manner.
For week ending Apr. 24, 2012, gold market commercial traders reduced their short position to 316,231 contracts, an amount not seen since gold‘s historic breakout above the $1,000 mark in Sept. 2009. Gold, then, proceeded to rally 92 percent throughout a 23-month rampage, as traders fled to the metal during the Federal Reserve’s ‘Quantitative Easing’ policies of QEI, QEII and ‘Operation Twist’.
Silver prices, after struggling below the $15 level in 2009, broke out to the upside to test the $20 mark in Aug. 2010 for a 33 percent gain, before surging through $20 in Sept. 2010 on its way to a continuation of a breathtaking 232 percent rally from the initial breakout above $15.
[Read More]
This is pretty amazing!
ReplyDeleteI totally agree. Interesting times we live in.
ReplyDelete