To: Sailing2 who wrote (235495 ) 6/28/2014 6:56:00 PM From: f-layer Read Replies (2) | Respond to Comments released early this AM re the recent COT report.....by Ed Steer (references from Ted Butler).....The Commitment of Traders Report was worse than even Ted imagined it would be, as my hoped-for scenario didn't even come in second in a 2-horse race. Ted has never been wrong yet---and I must have been dreaming in Technicolor if if I thought I was going to best him on this one. In silver , the Commercial net short position exploded by 20,059 contracts---100 million ounces of paper silver---or to put it another way, 44 days of world silver production. The Commercial net short position almost doubled in a week to 214.5 million troy ounces. JPMorgan's short position is about a third of that amount. It was almost all technical fund covering of short positions as they raced to cover as moving averages were broken to the upside---and the raptors [the Commercial traders other than the 'Big 8'] let them off easy and sold them all the long contracts these technical funds wanted. Even JPMorgan got into the act---and Ted Butler feels that they went short about 1,500 additional silver contracts during the reporting week, bringing their short-side corner in the Comex silver market up to 14,500 contracts, or 72.5 million ounces. As bad as the silver number was, the number in gold was gargantuan, as the Commercial net short position in that precious metal blew out by 53,282 Comex contracts, or 5.33 million troy ounces---the biggest 1-week change that I can remember. The Commercial net short position increase by 70 percent in just one week---and now stands at 13.16 million ounces. Once again it was the gold raptors selling longs to the technical funds as they covered short positions and, like silver, even JPMorgan showed up, selling about 4,000 of their long-side corner in the Comex gold market. Their long-side corner is down to 30,000 contracts, or 3.0 million troy ounces. Ted pointed out on the phone that in the last three weeks, the Commercial net short position in silver has increased by about 33,000 contracts. So if you're looking for a reason when the silver price is up only two bucks, that's the reason. Once again it should obvious to anyone with more than two synapse to rub together that the rallies of last Thursday and Friday---and since the June 5 low---were just about 100 percent caused by short covering in both metals. I should also include copper, as the blow-out in the Commercial net short position in that metal was massive as well---and for the same reason. As Ted Butler said---and rightly so---this is the technical funds/speculators being gamed by another set of speculators---the raptors---with these ones dressed up as Commercial traders. There's not a damn thing 'Commercial' about them. They're there for fun, profit---and price management. Why this isn't obvious to most market analysts is a complete mystery to me.
