"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput


Friday, February 18, 2011

Silver Commitment of Traders

Things are back to business as usual in the Comex silver market  with the Managed Money camp eager to buy in on the long side while the Commercials and Swap Dealers generally take the other side of the trade.

Silver has rallied another $2.18 since Tuesday's close which is no mean feat. Short positions in this market are deeply hemorrhaging since that cut off day which makes it all the more remarkable that thus far we are not seeing a reduction in total open interest. That means that the shorts are not being squeezed out yet although yesterday's and today's action has all the hallmarks of a significant short being squeezed out of this market.

There are still some fresh sellers however who keep coming in. Someone on the short side has some amazingly deep pockets to deal with this kind of onslaught and continue piling on more positions.

On the other hand, Managed Money is getting aggressive with this market and because of its small size, they have considerable firepower at their disposal which allows them to run this market very hard to the upside.

The general public is sleeping right now and must have missed this move. They are well down from their recent peak of nearly 20,000 net longs. That I take as a further positive sign.


  1. What are the dates in this chart? The font is not legible.

  2. Deep pockets...now who could that be

  3. Hi Dan, where can f find these charts?

    Regards C.

  4. Chris - I create them myself using the data from the CFTC website.


  5. Hi Dan, What is Open Interest?

  6. Oz - open interest is the total number of contracts "open" in a commodity futures market. For every single contract traded there is a buyer and a seller. Each time that transaction is conducted with a new buyer and a fresh seller coming in, the open interest rises by one contract.

  7. To those of Dan's followers who are asking him very elemental questions about futures, I would suggest that you will find alll the information by just GOOGLING the term.

    You will educated yourselves more quickly and find much more info that will educated you far better than relying on Dan to answer you.

    His time is VERY LIMITED and is meant for his blog postings, himself and his family.

    I know this from personal experience on my blogs.

    Please respect Dan's valuable time and educated yourselves by using your computer and GOOGLE or any of the MILLIONS of internet resources available to you in the privacy of your homes with just your 'fingers doing the walking'.


  8. Sorry for the multiple misuse of 'educated' instead of 'educate' in my post above.

    I usually proofread my postings, but slipped up this time. I'm really not a dummy.



Note: Only a member of this blog may post a comment.