Commodity Trade Mantra

Posts Tagged ‘Hedge Funds’

Silver Prices in Uptrend or is More Correction Yet to Come?

The Daily trend has flipped higher but the intermediate term trend for silver is yet lower. Hedge funds remain bullish on silver. As long as this recent upside momentum remains intact, this should pose no problem, but as we have seen time & again, any hesitation to move higher, any loss of upside momentum, and this fickle crowd will have to be watched for further long liquidation.

The Silver Futures Market War Continues Unabated - Be Cautious

The hedge fund net long is at a new all time high. The Swap Dealer net short is also at a new all time high. Commercial net shorts in silver are fast approaching the all time high set back in October 2009. All of this being said, the composition of this silver market internally is becoming extremely unnerving. If you are long in silver – be cautious and whatever you do, do not grow careless.

Hedge Funds Have Never Been This Short Gold

At 1.4 million ounces the market is now in its biggest net short position ever, surpassing bearish positions entered into in July and early August. That was the first time hedge funds were net negative since at least 2006. It’s not just gold that is being swamped by negative sentiment. According to the CFTC, 15 of the 24 commodities tracked turned more bearish last week.

Is Gold Now Set-Up For A Move Higher?

The bullion banks have quietly shifted their trading book to a net long position. And, the hedge funds & small retail traders have taking the other side of this & have gone significantly net short Comex gold. It is very rare for the hedge funds to run a net short position. The last time when hedge funds were net short was in early 2000 right before the bull market in gold was launched.

Silver Price and iShares Silver Trust - SLV Going to $12

The movement from $17.5 to $50 from 2010 to 2011 had only a small correction. It just played as a gigantic parabola. What we know is that parabolas are reverted back below their previous channels. Based on long-term demand line, formed during a period of over 12 years, the support for silver price is around $11-$12.

Here Is Why The Fed Can't Hike Rates By Even 0.25%

The US Treasury and the Federal Reserve (where Zoltan Poszar previously worked) understand and grasp the momentuous implications of even the smallest quantum of interest rate increase. What the Fed doesn’t want, is not one but one thousand LTCMs going off at exactly the same time in what is now the world’s most levered trade.

NIRP Officially Arrives In The US As JPM Starts Charging Fees On Deposits

NIRP is now officially in the US, which means that one after another US commercial banks will join what has already become a NIRP free-for-all across most of continental Europe where NIRP now reigns supreme & where trillions in government bonds yield negative rates. JPM is preparing to charge large institutional customers for deposits.

Silver And Gold Are Breaking Out Again

CFD unwinds will pressure gold & silver futures prices higher & spot prices will likely be dragged higher also, as we know the physical demand has been high. And perhaps most importantly, supply destruction is starting to bite. The end result, far less supply even as demand continues to rise.

The Volcker Rule and You: What’s Your Bank Doing with Your Money?

Its true that the Volcker Rule wouldn’t have prevented the financial crisis. So is your money safer in the bank with the Volcker Rule than without? There’s no concrete answer, but given that the loopholes are big enough to drive Jamie Dimon’s private jet through, I would say no.

Record Silver Eagle Buying Seen Even As Analysts Mislead The Public

Some analysts argue the downside to silver prices is much worse than gold. But US Mint sold more Silver Eagles in Feb & Mar 2014 than ever in the same time-period in previous years, surpassing 2013?s by nearly 2.4 million.Even when Gold ETF’s in 2013 saw massive sell-offs, Silver ETF’s had increments. WHY?

What the drop dead date for the Volcker Rule might mean for Gold

Big trading banks traditionally have occupied the short side of the paper gold market. The Volcker Rule which limits banks’ speculative investments (including gold) goes into effect April 1, 2014. There has already been quite a bit of adjustment to bank portfolios & will get interesting as we move ahead.

Avoid Regret: Accumulate Gold Bullion Now

Continuing their negative investor sentiment outlook, the short and long term forecast by analysts and hedge funds are expecting gold bullion to remain weak – A factor to consider beyond simply looking at investor sentiment, is the massive change in production by mining companies.

Wishing For Inflation? The Last Gasp Before Hyperinflation

Contrary to popular assumption, the Fed will get its constant wish for inflation, along with every other central bank armed with an unbacked currency – But far from the inflation of flawed theory, what they will get is a stampeding heard of rhinoceros.

Precious Metals Futures - Beyond the Madness

Price discovery on the largest precious metals futures trading system goes on protected by a fraudulent financial system and a legal system desperate to protect its importance. The only positive is that manipulation cannot go on forever and there is still time to act accordingly.

Precious Metals Will Rise As the Economic Recovery Disintegrates

There is no way of telling exactly when the U.S. Treasury Bubble will burst, however fundamentals are now pointing back in favor of the Precious Metals – Also looks like bullion banks are now on the “Bullish Side” of the big move up in Gold and Silver.

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