Submitted by SD Contributor Marshall Swing
SILVER COT REPORT 6/29/12
Commercials picked up 1,144 longs but covered a massive -3,799 shorts to end the week with 43.27% of all open interest, a mammoth change since last week, and now stand as a group at -60,055,000 ounces net short, almost 25,000,000 less net short ounces from the previous week.
Technically, this is one for the history books.
Very few weeks have ever seen these huge percentage point changes!
Last week, these same commercials had 45.65% of all open interest. That is almost a 2.5% change in just one week.
Large speculators picked up 595 longs but stocked up for Armageddon by purchasing 4,475 shorts for a net long position of 31,110,000 ounces, a 40% decrease in their net long position of almost 20,000,000 ounces from the prior week. Are these large specs intending to become the next silver short tandem of Jamie Dimon and Blythe Masters? Just do the comparison from last week’s COT report
http://www.silverdoctors.com/silver-cot-report-for-period-613-6192012/
Small speculators gave up -141 longs and purchased a very significant 922 shorts for a net long position of 28,945,000 ounces a dramatic decrease of over 5,000,000 ounces net long from the prior week.
The real question here is on what days, exactly, did the speculators pick up all those shorts? If it was early in the reporting period then they are in the money but if late in the reporting period then that tells us exactly why the uptick in price after close Thursday, opening in Asia, and on into Friday morning in Europe. The sudden rise Friday morning may have been the opportunity for the commercials to rid themselves of some of those speculator shorts.
One more thought is that price is now in between the low on Thursday and the reporting period high about Wednesday of last week. Could be that the commercials are not sure just what the speculators intentions are with those shorts and see the speculators as hanging tough in the trenches?
Looking at the commercials, we see the swap dealers were able to add another 1,382 longs during this period.
It has not been all that many weeks since they were a mere 57,000,000 ounces net long. Now they are 98,405,000 ounces net long.
What a difference a couple of months makes!
As always, for your convenience, if you would like to contact the CFTC and express your views to them, I have provided you their phone numbers and I hope earnestly that you fill up their phone lines: http://www.cftc.gov/Contact/index.htm and email addresses as well:
ggensler@cftc.gov Chairman Gensler
bchilton@cftc.gov Commissioner Chilton
jsommers@cftc.gov Commissioner Sommers
Somalia@cftc.gov Commissioner O’Malia
mwetjen@cftc.gov Commissioner Wetjen
dmeister@cftc.gov Director Meister
See you next week!
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Doc;
Agreed. C’mon Jake. A lot going on and time is short. We need your input, The Blues Brother’s way.
Bottom line means business as usual.. plenty cheap metal for stackers..
Shorts are squeezed, Silver will ride up next week, but will not be sustainable, and the price will come down, yet again. Buy your Silver at the end of next week on the low dips… I predict a low dip by Thursday next week, unless Banana Ben opens his mouth, or the Eurozone Craps itself, either of these 2 evils are possible. SP.
Sounds like a plan Silver P. I may have to let loose next week on a little purchase. Next week will be interesting to say the least.
APB! Be on the look out for Jake. He is a wanted man. Please sen any information available to the DOC. Again, this is and APB. Full description below.
Be on the look out for the man on the right in this artist’s sketch.
Silver Psycho;
Thank you for your input and suport it’s vary helpful. Will see next we if your predictions run true. And yes no one can gauge the markets when they jump on every news bite.
SP:
Massive commercial short covering and price only moved back to 27.50? Shorts help fuel a rally b/c they will be forced to cover. This doesn’t seem like a squeeze; there were willing sellers that allowed them to cover easily. Now they just have 25mil more ounces to reshort again..Although one could make the argument that the morgue knows something non public like an up coming central bank policy change or other euro news. If this were the case they were able to cover a lot of their position without moving the market too far against them.
As far as the shorts go, and since the shorts a primarily the banks, I`ll repeat the first two rules of finance.
Rule #1 When you find yourself in a hole, stop digging.
Rule #2 See rule #1
I miss my Brother Jake, Come on back Jake, Please!!!!!
“Massive commercial short covering and price only moved back to 27.50?”
Yes, indeed. As time goes by, more and more massive manipulation is required for less and less PM price depression. At least, it seems that way to me. Other than emptying various bullion bank vaults as PMs move from West to East, is all this manipulation actually doing anything for those engaged in it? Doesn’t look like it to me but then what do I know?