Broken link to story, but here's what I see on the COT:
1) Funds/Speculators cutting net long contracts from 50K to
30K since October 2010 into the push to $30 silver; and,
2) Commercials (hedging Producers/Consumers) covering shorts
from net short 60K contracts to net short 40K from
Oct to now.
As I read it, this would argue for more downside in Silver as
the speculators tend to drive marginal price and they have been
selling heavily ahead of the recent correction this time (this
looks rare and resembles distribution -- also happening in
gold), while the Commercials are lightening up on shorts but
have a long way to go to reach levels of prior price lows
(they tend to position inverse to price as hedgers).
Silver Shorts Declining...
Posted by saturn6 on 7th of Feb 2011 at 02:54 pm
Nice graph showing the number of shorts falling, together with comment re commits trader report.
Full Story
COT tables
Posted by lessarda on 7th of Feb 2011 at 03:33 pm
Broken link to story, but here's what I see on the COT:
1) Funds/Speculators cutting net long contracts from 50K to 30K since October 2010 into the push to $30 silver; and,
2) Commercials (hedging Producers/Consumers) covering shorts from net short 60K contracts to net short 40K from Oct to now.
As I read it, this would argue for more downside in Silver as the speculators tend to drive marginal price and they have been selling heavily ahead of the recent correction this time (this looks rare and resembles distribution -- also happening in gold), while the Commercials are lightening up on shorts but have a long way to go to reach levels of prior price lows (they tend to position inverse to price as hedgers).
Silver Shorts Declining....
Posted by mdundon on 7th of Feb 2011 at 03:27 pm
For Commodities Look for COT report...
Posted by saturn6 on 7th of Feb 2011 at 03:33 pm
Here
For stocks Here