The Commitments of Traders reports are finally over the government shutdown hangover and up to date as of Tuesday the 5th.
Gold sees the large Specs finally running for cover (ha ha ha) after the damage done by the bull horn honking cheer leaders a few weeks ago. So poetic.
A visual of the data presents one cause for concern. The little guy is still over bullish and that is because the little guy reads and believes alarming, sensational, greed-stoked and/or conspiratorial crap out there and swallows it like a little sucker fish feeding on the excrement of the bull sharks.
But I digress. Silver also saw large Specs puking and shorting as the metals took a dive after the dangerous sentiment signals (noted only here at this site from what I could see at the time).
Here’s the picture.
Both gold and silver have done good work eliminating the over bullish speculators, but neither they nor the commercials are where they need to be for a good long-term, low risk signal by CoT. It’s just one indicator but it’s an important one.
The daily charts of gold and silver do after all have some room to explore lower levels if this is just a bounce playing out.
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