Okay, obviously this week has been one for the records books as the Bears 7 video said it would be. Maybe not to the death and murder tune, but a few bankers, as you are about to see got smoked this week in Gold.
Gold COT report:
Large specs have sold off 32,586 long contracts and as of Tuesday the 9th, have added 11,016 short to their pile. (Dumb.)
And for the real players, the Commercials such as the Morgue: They ADDED 8,458 long, and COVERED a ridiculous massive sum of 29,970 contracts.
So, going into next week, I suspect the new large spec shorts will be squeezed like lemons if we test $1800 again. This may be confirmed by the fact that Gold did not sell off as much as they wanted it too this week. So if the price ticks up, watch for another strong move past $1800, and onto $1870.
As for the Silver COT report:
the large and small specs are useless and been wiped out from the May 1st 53 margins hikes.
The commercials is what we need to focus on:
They added 5,953 Long and COVERED 3294 contracts.
If anyone is confused by this report, I will spell it out for you.
The big banks like the morgue and HSBC just covered an insane amount of shorts, and have added more long. This is encouraging.
I have received an email from a dedicated blogger informing me of the fact that "Berscmucknanke" may already be printing. Lets take a look.
According to the data on the Federal Reserve webpage found at Click here for entire data... The Fed may already be surreptitiously flooding the system with printed money. M1 is growing at annual rate of 23% and M2 is growing at an annual rate of 16%.
These are incredibly steep increases from what we had three months ago, when QE2 wound down. This growth is shockingly high, and almost hard to believe, so if someone can confirm its validity please do so.
It also seems that the growth in M1 and M2 is coming from leakage from excess reserves. Required reserves (which banks must set aside to backstop loans that they make)- are growing incredibly strongly in the past two months Click here for entire data...
If anyone can explain these anomalies, please do so as the Jackson Hole QE3 debate grows like an erection by the minute...