Loading ...Gold correction at hand COT data signals correction
From another forum:
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Gold correction Alert thru COT data.
Looking at recent past COT data and gold’s price behaviour only conclusion to draw is gold will correct here.
Large commercial shorts increased significantly in second week in a row. Now the shorts stands at high as previous highs of May 2015 and Oct 2015. A deep correction unfolded from those highs.
Commercial shorts: 392,944 up from last week + 52148 Net short position 163420.
which is 23.4% of the open interest.
Compare this to Dec 4 2015 bottom Net short was only 7050 vs today’s 163420.
looks a bit beary scary but how do these figures compare with those in 2008-2009 for instance as gold tried to reclaim $1000?
Just to clarify the Net Short figure – I am thinking that it is the Net Commercial Short Position; is that right?
Do you also look at spec longs and open interest? Do you think the Net Commercial Short position is the key figure?
Net short is the net commercial shorts. Total commercial shorts minus commercial long.
I did in past but it did not relate to any predictive value.
As you can see from chart (a crude way) when ever large commercial short spikes at top gold has tendency to correct. At bottom net short level declines significantly.
No I do not have data from 2008 to 2009.
Market may not behave the same as past every time there is difference.
like now general market is ready for decline and PM sector is heading for inverse relation. In the past both were in the same direction up until 2011.
Thanks for the info. Inverse PM to stock market wold be more like 2000-2003, before the 1% interest rates from Greenspan took hold.