Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek Radio: Bill Murphy and Andy Schectman, and Chris Waltzek
By: radio.GoldSeek.com

State of Inflationary Confusion
By: John Mauldin

BROAD US STOCKMARKET update - IN POSITION FOR DOWNWAVE NUMBER 2...
By: Clive Maund

Goldís Basing Pattern Continues
By: Gary Savage

Stock Market Volatility Attributed to 'Shenanigans'
By: Michael Ballanger

Gold Seeker Weekly Wrap-Up: Gold and Silver Fall Roughly 1% on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 2 23 2018
By: Ira Epstein

Unintended Consequences, Part 1: Bigger Deficits = Higher Interest Rates =ÖMany Bad Things
By: John Rubino

A Roman lesson on inflation
By: Alasdair Macleod

COT Gold, Silver and US Dollar Index Report - February 23, 2018
By: GoldSeek.com

 
Search

GoldSeek Web

 
Lightening-Fast COT Reversal: Now Fairly Bearish For Gold And Silver


By: John Rubino



 -- Published: Tuesday, 22 August 2017 | Print  | Disqus 

That didnít take long at all. Just a few weeks after the Commitment of Traders (COT) Reports for gold and silver turned positive Ė setting off a nice rally in both metalsí prices Ė this indicator has flipped back to strongly negative.

In gold especially, speculators (always wrong at big turning points) have loaded up on long futures contracts while closing out their short positions. The commercials (always right at big turning points) have done the opposite, closing out long positions and going aggressively short.

In the week ended August 15, the gold speculators and commercials got about 10% more long and short, respectively. Thatís a big one-week move, and brings the imbalance between good and bad positions to nearly 3-to-1 bearish. The trends in silver, while not as extreme, still point in a bearish direction.

Hereís the action presented graphically, with the silver lines on the top half of the chart representing speculator long positions and the purple bars below indicating commercial shorts. Note the leisurely pace of previous months, and contrast it with the v-shaped move that just took place. Not sure what that means, other than that speculators hoping to ride a longer upswing might be disappointed.

Itís important once again to note that the COT report is not a day-trading tool. Historically itís been a pretty good indicator of the general trend over the following six or so months. But it has nothing to say about tomorrow or the day after. So itís irrelevant for stackers and other long-term accumulators. But it is useful for someone who has their eye on a given gold/silver mining stock and is looking for a good entry point Ė which in this case might be a few months in the future.

Another point that bears repeating is the temporary nature of this indicator. Eventually, fundamentals in the form of surging demand for physical precious metals will swamp the paper market. Gold and silver will soar regardless of which futures players are long or short.

 


| Digg This Article
 -- Published: Tuesday, 22 August 2017 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus







 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.