"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

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Friday, September 7, 2012

Commitments of Traders Reports

Following are some charts detailing the positioning of the hedge funds in both the silver and in the gold markets.

Note the build in the longs and the reduction in the shorts as those funds who gambled on a breakdown in the price of the metals and sold them down near their support levels, were caught flat-footed and forced to cover.

The first chart is that of Silver:

The following chart is of Gold. Note that since May of this year, when gold was trading below the $1550 level, and when hedge fund short positions were at a maximum, those hedge funds playing gold from the short anticipating a breakdown in the price, were forced out and have been covering ever since. Meanwhile, new longs are coming into the market in a big way putting further pressure on the short camp.

1 comment:

  1. Thanks Dan,

    Do you think there is still plenty of potential for gold, now that the longs are back to already 150 K and the shorts sold out many of their positions? Will the move upwards keep fueling itself on the short term?


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