Posted by praetor54 on 29th of Jun 2014 at 10:11 pm
I wouldn't place too much emphasis on the Commercial Short
positions as you can see by the chart. I've overlaid the price of
silver above the Commercial net positions for the last year. Silver
charts can be found
here
The basic insight into Commercial behavior is that it makes
sense for some producers to sell forward at this price. When they
all are locking in high prices or all of the consumers are locking
in low prices, it can be a bigger tell for market turns. Just
something to add to price patterns at extremes.
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SLV Commercial Short Position
SLV Commercials had similar short position in late March of this year and look what happened in the next 9 days
Posted by praetor54 on 29th of Jun 2014 at 10:11 pm
I wouldn't place too much emphasis on the Commercial Short positions as you can see by the chart. I've overlaid the price of silver above the Commercial net positions for the last year. Silver charts can be found here
The basic insight into Commercial
Posted by a_l_ on 30th of Jun 2014 at 09:37 am
The basic insight into Commercial behavior is that it makes sense for some producers to sell forward at this price. When they all are locking in high prices or all of the consumers are locking in low prices, it can be a bigger tell for market turns. Just something to add to price patterns at extremes.