Post by jeffolie on Jul 24, 2010 14:51:01 GMT -6
6 months or less of downside price suppression: "The CFTC has a mandate to impose position limits within 180 days"
================================================================
JPMorgan et al Reduce Their Gold Short Position Substantially
....The CFTC has a mandate to impose position limits within 180 days... but I would be awfully surprised [as would Ted] if the bullion banks didn't move sooner than that to close out their short positions... and once they do, we'll see daily price moves that will take your breath away.
.... Well, Friday's Commitment of Traders report was a stunner. I was in shock... and even Ted was amazed. In silver, JPMorgan et al reduced their net short position by another substantial amount. This time it was 3,254 contracts. The Commercial net short position [where the '8 or less' traders do their dirty work, is down to 239.8 million ounces. The '4 or less' traders are short 239.2 million ounces of that... which is basically the entire net short position! The '8 or less' traders are short 306.1 million ounces. To put it another way... 8 bullion banks, led by JPMorgan, hold 76.6% of the entire gross Commercial short position [79,864 contracts] between them... and the remaining 26 traders in the Commercial category hold 24.4% between them, which is less than 1% each! Any questions? The full-colour COT report is linked here... and it's worth a look.
But the real shocker was in gold, where 'da boyz' reduced their net short position by another whopping amount for the second week in a row. This week it fell by 32,684 contracts! The total Commercial net short position in gold is now down to 21.6 million ounces... a number we haven't seen in many a moon, dear reader. The '4 or less' bullion banks are short 22.3 million ounces... which is a bit over 100% of the Commercial net short position. The '8 or less' traders are short 28.6 million ounces of gold. Here's the link to the full-colour gold COT report... and it's worth your time as well.
.....If you haven't figured out what this COT is saying... it basically shows that if the '8 or less' traders in silver and gold were not holding these grotesque short positions, the rest of traders in the Commercial category of each metal would be net long... just like the traders in the other two categories already are... and if these bullion banks covered their short positions, or withdrew from the market, then the prices of both metals would explode to the outer edges of the known universe.
.....And that's what this position limits issue with the CFTC is all about... establishing credible position limits, eliminating phony hedge exemptions... and enforcing them. That will end the price manipulation in both silver and gold forever....
www.caseyresearch.com/displayGsd.php
================================================================
JPMorgan et al Reduce Their Gold Short Position Substantially
....The CFTC has a mandate to impose position limits within 180 days... but I would be awfully surprised [as would Ted] if the bullion banks didn't move sooner than that to close out their short positions... and once they do, we'll see daily price moves that will take your breath away.
.... Well, Friday's Commitment of Traders report was a stunner. I was in shock... and even Ted was amazed. In silver, JPMorgan et al reduced their net short position by another substantial amount. This time it was 3,254 contracts. The Commercial net short position [where the '8 or less' traders do their dirty work, is down to 239.8 million ounces. The '4 or less' traders are short 239.2 million ounces of that... which is basically the entire net short position! The '8 or less' traders are short 306.1 million ounces. To put it another way... 8 bullion banks, led by JPMorgan, hold 76.6% of the entire gross Commercial short position [79,864 contracts] between them... and the remaining 26 traders in the Commercial category hold 24.4% between them, which is less than 1% each! Any questions? The full-colour COT report is linked here... and it's worth a look.
But the real shocker was in gold, where 'da boyz' reduced their net short position by another whopping amount for the second week in a row. This week it fell by 32,684 contracts! The total Commercial net short position in gold is now down to 21.6 million ounces... a number we haven't seen in many a moon, dear reader. The '4 or less' bullion banks are short 22.3 million ounces... which is a bit over 100% of the Commercial net short position. The '8 or less' traders are short 28.6 million ounces of gold. Here's the link to the full-colour gold COT report... and it's worth your time as well.
.....If you haven't figured out what this COT is saying... it basically shows that if the '8 or less' traders in silver and gold were not holding these grotesque short positions, the rest of traders in the Commercial category of each metal would be net long... just like the traders in the other two categories already are... and if these bullion banks covered their short positions, or withdrew from the market, then the prices of both metals would explode to the outer edges of the known universe.
.....And that's what this position limits issue with the CFTC is all about... establishing credible position limits, eliminating phony hedge exemptions... and enforcing them. That will end the price manipulation in both silver and gold forever....
www.caseyresearch.com/displayGsd.php