Good morning Ladies and Gentlemen:
I would like to introduce to you our latest entrants to the Banking Morgue 2010:
details will come on Monday.
Gold closed up by $6.10 to 1203.10. Silver rose in fine fashion as well closing at 18.46 up 15 cents.
The gold comex OI finally started to turn upwards, rising by 1573 contracts to 513,070
The silver comex Oi however fell marginally by 581 contracts to 124,098.
The comex revealed the COT report after the market closed and it was a doozy!!:
In gold, the large speculators that were long reduced those long positions by a rather large 5547 contracts.
the large speculators that were short gold reduced their short positions also by a rather large 2161 contracts.
even the spreaders reduced their long/short positions by a huge 14497 contracts.
Now for the commercials in gold:
those commercials that were long in gold reduced their positions to the tune of a whopping 13,553 contracts.
those commercials that are perennial shorts reduced their short positions to the tune of a whopping 19079 contracts.
Now for the small specs:
those small specs that were long in gold reduced their positions by 7826 contracts.
those small specs that were short reduced their short positions by 5686. contracts.
Do you see the picture:
everyone reduced their positions. I have never ever seen that happen before.
Generally when you see that happen, you cannot get a more bullish sign to enter "all in" in gold.
Now for silver where the COT responded normally:
Those large specs that were long in silver increased those positions by 4705 contracts.
Those large specs that were short in silver reduced those short positions to the tune of 1413 contracts.
In the commercial category:
those commercials that were long in silver reduced their long positions by a tiny 1298 contracts.
and those commercials JPMorgan etc that have been short silver since the beginning of time added to their short position by a rather hefty 4477 contracts.
In the small spec category:
hardly any move..not worth talking about it.
So you see a massive difference in gold and silver.
In gold everyone reduced their positions. Those that were long reduced their longs. Those that were short reduced their shorts. Even the spreaders reduced their spread positions
This is not normal behaviour and something big has happened.
In silver, basically what we expect: the large specs increasing their long positions and the commercials like JPMorgan increasing their shorts by supplying the paper.
Is it possible that many of the contraction in OI is the receiving of gold notices through the GLD? And not report on this?
Ladies and Gentlemen: the gold comex figures just do not pass the smell test. Something sinister is going on behind closed doors. The figures just do not add up. Maybe I am wrong
but it is totally different to the silver comex market.
Let us now go to the notices and inventory levels at the comex: