we're not saying it's crazy bullish, but it's nice to see the
total net short work below 100K. That said, when you look at
history it's been as low as 5K and has had plenty of times when it
bottomed around the 40 - 70K range, so it could go lower and
honestly I would rather have it go lower myself. And in order
to go lower that means lower prices for gold to get it there.
Again what was a bullish setup last week was the falling
wedge on the GDX 2hr time frame, which played out nicely. Did
gold or silver metal have a nice bottoming pattern? No way, they
were both still in their death spiral, you want to see some sort of
pattern emerge there to suggest a bottom.
again I know what you are saying and it's a valid point.
However I've also monitored the 'net' short numbers since
2004, so I've been doing it a long time and know how they behave.
Last week's drop below 100K isn't a buy signal but it's
finally working down to levels where I will start to monitor the
metal for signs of bottoming. And yes we might need to see the
'net' short drop to 50K or lower before it's done who
knows.
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we're not saying it's crazy
Gold COT not really bullish. Last week that it was ...
Posted by matt on 2nd of Jul 2018 at 09:36 am
we're not saying it's crazy bullish, but it's nice to see the total net short work below 100K. That said, when you look at history it's been as low as 5K and has had plenty of times when it bottomed around the 40 - 70K range, so it could go lower and honestly I would rather have it go lower myself. And in order to go lower that means lower prices for gold to get it there. Again what was a bullish setup last week was the falling wedge on the GDX 2hr time frame, which played out nicely. Did gold or silver metal have a nice bottoming pattern? No way, they were both still in their death spiral, you want to see some sort of pattern emerge there to suggest a bottom.
again I know what you are saying and it's a valid point. However I've also monitored the 'net' short numbers since 2004, so I've been doing it a long time and know how they behave. Last week's drop below 100K isn't a buy signal but it's finally working down to levels where I will start to monitor the metal for signs of bottoming. And yes we might need to see the 'net' short drop to 50K or lower before it's done who knows.