Big boys unwinding their short positions

[benjamen]

I was reading through this blog:
http://www.tfmetalsreport.com/blog/3853/updated-gold-and-silver-charts

One thing that struck me was this section:

"In gold, the Cartel net short ratio fell to 1.76:1. The lowest I've ever seen it. Again, for the sake of comparison, the 4/5/11 net short ratio was 2.64:1 and the 2/28/12 net short ratio was 2.69:1, so the Gold Cartel net short position has now been cut in half from those peaks."

"In silver, the Cartel net short fell to 1.31:1 and a total, aggregate number of just 14,334. This likely means that JPM is now under 10,000 in net short. By far, the lowest I've ever seen. For the sake of comparison, the 4/5/11 ratio was 2.69:1 and the 2/28/12 ratio was 2.32:1. This means that the net short ratio of The Silver Cartel has been trimmed by 75% since 2/28/12."

In finance, you watch the executives and board member of a company. When they are buying or selling the stock of their company, the market takes it as a strong/weak signal.

Similarly, when the moves and shakers of the gold/silver markets are getting out of their short positions, I take this as a very bullish signal.

Discuss!

 

[DSAbug]

I recommend paying attention to COT reports simply to see what the commercial traders are doing. Commercials are usually right.

 

[benjamen]

I recommend paying attention to COT reports simply to see what the commercial traders are doing. Commercials are usually right.

Where do you go to get those reports? I usually only see them when a writer references them.

 

[DSAbug]

Where do you go to get those reports? I usually only see them when a writer references them.

http://www.cftc.gov/marketreports/commitmentsoftraders/index.htm

 

[ancona]

Benjamen,
Go to Harvey Organs blog. He posts the COT every week and updates the PM markets each evening. Harvey does good work and is an asset to teh PM community.

 

[DSAbug]

Benjamen,
Go to Harvey Organs blog. He posts the COT every week and updates the PM markets each evening. Harvey does good work and is an asset to teh PM community.

He does indeed. He doesn't always look a the NET number which is my only criticism.