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Tuesday, March 4, 2008

Dan Norcini: Looks like a commercial signal failure in silver | Gold Anti-Trust Action Committee

Dan Norcini: Looks like a commercial signal failure in silver | Gold Anti-Trust Action Committee

Dan Norcini: Looks like a commercial signal failure in silver

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By Dan Norcini
JSMineset.com
Saturday, March 1, 2008

These charts detail the commitment of traders report through Tuesday of this week:

http://www.jsmineset.com/cwsimages/Miscfiles/5830_Charts_for_2-29-2008_C...

I have included a chart of silver since there is a development there that bears comment. Please refer to that chart where I have included some of the following comments and have marked the area on the chart that demonstrate what is taking place:

"Notice that the commercial short category sharply reduced the number of outright short positions (-9,297). This occurred from Tuesday of last week through Tuesday of this week. Over that time the price of silver rallied $1.22. If you look at the chart carefully, you will observe that this is the first time this has occurred in which the funds have not been reducing their net long position.

In other words, this appears to be the start of a commercial signal failure. Normally the commercial perma-shorts in silver have used fund long liquidation to cover their shorts as the market moved lower. Not this time; they are buying on the way up!"

Also, while I did not note this on the chart, it is also noteworthy that someone obviously had to take the other side of that trade and sell silver futures. We might normally expect to see some of that selling occurring among the fund longs that could use some of that forced buying to book a few profits and sweep some of their paper earnings off the table"


-click on the pdf for charts on the commercial short position. could the suppression of metals be over? -st0ckman

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