Just reading it as I see it, folks.
Gold commitments of traders saw the specs press long and the commercials press short.
Silver saw specs cover shorts and press some longs while commercials net shorted with some gusto.
So it all comes down to whom you believe is ‘smart’. Traditionally, at bear turning points the commercials are positioned very negative as they are today, as are the all-in specs going the other way. What I like to see is a trend toward a low risk setup mature, but since the metals topped in the summer there has been anything but a trend in the CoT.
It’s a real battle going on out there in gold and silver… and it’s not a battle I am anywhere near ready to declare won by gold and silver bulls. Actually, quite the contrary. If the gold price takes out the down-sloping SMA 50 and silver does the same, maybe we can talk about the correction’s end. But not until, and the CoT does not help the case.
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