Silver in Giant Flag or Pennant Formation

Consolidation staging for resolution likely just ahead. 

Largest futures traders positioned for one direction – up – are they right?   

HOUSTON –  In our linked charts for subscribers we noted this past weekend that the Commodity Futures Trading Commission (CFTC) commitments of traders report for silver (COT) remains more bullish than bearish.  We put notations directly into the charts we share with Vultures (Got Gold Report Subscribers) so they can read at a glance our impressions of the COT action.

The main reason for that more bullish than bearish “read” is because the traders the CFTC classes as “commercial,” which includes bullion banks and swap dealers combined, are presently at a very low level of “net shortness.” 

Not everyone does, but we subscribe to the theory that the collective positioning of the largest futures traders on the planet is a kind of window into their expectations for the price.  The simple-Simon way of looking at the commercial COT positioning is that when the combined commercials are at a very low net short level (like right now), it means (to us) that they are not, repeat not, positioning as if THEY think the price of silver is heading a lot lower … and vice versa.

Just below is the graph we use to track the combined collective commercial net short positioning (LCNS) for COMEX silver futures, aka the “legacy COT” report.  In the graph, note just how low the blue line is and how rare it is for that line to be this low. read here

Read more at CompareSilverPrices.com