Also from the same guy:
Monday's COMEX gold estimated volume was a very light 13,000 lots. Total COMEX gold open interest on Friday surged 3,857 to 190,782
contracts, representing a strongly bullish scenario in which commercials are accumulating in spite of Friday's $2.10 rise in the gold price. Commercials generally buy only on dips, so when they buy on an up day this is especially noteworthy (and bullish). COMEX silver open interest dipped 370 to 98,157 lots as the speculative bubble begins slowly to be deflated. Given the outrageously lopsided (extraordinarily bearish) commitments for silver, on any selloff, thousands of speculator sell stops will be triggered, causing a sharp short-term collapse in the silver price. It's not "different this time." Recommendation: Buy silver puts, or as a superior hedging strategy, be a true contrarian by playing the gold/silver ratio to expand. COMEX gold warehouse stocks were unchanged at 819,457 ounces, while COMEX silver warehouse stocks surged 1,079,682 to 77,398,002 ounces, modestly above their lowest level since 1982. |
