Yesterday, September 2, Goldman Sachs got out of 1,612 short contracts and added 351 long contracts to bring their long position to 1,049 contracts (a 50% increase in one session) and Voltheir net short position to 2,537 contracts (a 44% reduction in one session).
This is a new record low for their net gold short position since these statistics started being tracked in January of 2006.
Goldman Sachs is running for the hills.
Their net gold short position in the middle of 2006 was a little over 50,000 contracts. Since then, it has been trending down in a channel so that they should have a zero net short position by November of 2008 if the 2+ year long channel and down trend line holds.
Volatility can work both up and down. Is there going to be an explosion in gold and silver price to the upside?
Gold made a nice recovery on Tuesday, the yellow line, almost a "hammer" (bottoming action) on a bar chart. And, it left a nice big gap to be filled. After today, the USD is now up 5 days in a row and made an upside down hammer on the fifth day. Topping action.
No comments:
Post a Comment