Little Joe see the attached chart
Realize that the commercial net short position went to 80K this week - not yet reflected on chart.
I look at the commercial net short position as a "weight" . When the weight is heavy as it is now, Gold's ability to make progress is more difficult and usually impossible. When it is in the lower realm of the scale or when the weight is being reduced, Gold has a better chance to rally. Gold commercials do hedge physical purchases as a part of normal business insurance risk. The expectation is that they would generally be net short, and thus experience losses on their position in the futures market as it rallies, but when they are 80K net short, if history is any guide, they are saying something to us. We can refuse to listen, deny, argue, look the other way, whatever, but the commercials at extremes are "usually" disregarded at one's risk.
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This time, of course could be different....but so far it hasn't been.
Off Topic, Just finished listening to Wall Street Week with L.R. - as usual this is a great time to buy stocks. Had to be impressed with Apollo (APOL) and the logic behind CPS....information about us all in their computer banks for pratical good purpose, we'll assume.... |
