Commodity Trade Mantra

Posts Tagged ‘Short Covering’

Will The Rally In Crude Oil Prices End Today?

The market sell off on product market concerns did not lead any notable change in crude oil fundamentals. Refiners have yet to pull back meaningfully on crude oil purchases & crude oil inventory builds are only starting to turn bearish in both the weekly US statistics and globally. US crude oil inventories are set to build above normal over the coming months.

Here's What Makes Precious Metals Short Sellers Nervous

It’s certainly an interesting (and so far this year, fruitful) time to be owning physical precious metals. Leveraged futures traders risk being wiped out if markets don’t go their way. Holders of physical metal can sleep well at night regardless of what happens on the COMEX. Is this the paper shorts’ last stand? Time will tell.

Massive Gold Investment Buying Overpowers Speculation & A New Bull Market Is Born

The magnitude of Gold investment buying seen so far this year is exceedingly bullish! Nothing like it has been witnessed since early 2009, when hedge funds flooded into gold after 2008’s once-in-a-century stock panic. Since investors have so aggressively taken the gold buying baton from gold futures speculators, the odds are stellar a new bull market in gold has been born!

There Are Significant Risks To Goldman's Forecast For Gold Price Weakness

Goldman admitted that while its “base case is still for higher US real interest rates, lower gold”, it may be wrong adding that “while our base case remains for higher US real rates and lower gold prices, there are significant risks that our forecast for gold price weakness is pushed out, should the Fed surprise us and remain on hold in December.”

American Futures Speculators - The Primary Driver Of Gold Is Bullish

Gold’s primary driver in recent years has been the collective positions of American futures speculators. Their hyper-leveraged bets have given them outsized influence on gold prices & today their gold futures bets are very bearish. When this selling reverses into buying, it has the potential to fuel a sharp & major gold rally.

Gold And Silver Rise on Short-Covering, Physical Demand & Greece Risks

Precious metals had their best day since January yesterday as the price of gold and silver rose substantially. Many factors seemed to have come together to generate the rise but the primary cause seemed to be buying in the futures market which led to short covering which quickly propelled gold & silver in a short time.

Gold Futures Short Covering Rally

In the past, speculator short covering frenzies have pushed gold high enough to ignite new long-side buying by speculators. If this next short covering gold rally coincides with the lofty US stock markets and/or parabolic US dollar finally rolling over, there will be a big resurgence in gold investment demand way beyond speculator short covering.

Maybe Oil Goes to $70 on its Way to $40

Crowded trades unwind in precisely this sort of freefall. When the conventional media ordains oil inevitably dropping to $40/barrel, I start looking for something else to happen–like oil going to $70/barrel. There are number of reasons this isn’t as farfetched as it might seem at the moment. Buying begets buying, shorts start covering, and voila…

Gold Shorting Exhaustion

Futures trading is an exceedingly unforgiving game, with super-dangerous inherent leverage. The sole driver of the crazy movements in gold, in last few months has been US speculators’ extreme shorting of gold futures, which has battered gold prices around in the absence of investment demand. But this epic gold shorting looks exhausted.

How Gold And Silver Price Decline And Short Covering Was Manufactured

JPMorgan rigs the price lower on those big down days, but not by selling enormous quantities of COMEX silver contracts short. JPM gets the price snowball rolling down by selling a small quantity of contracts short at critical times with the intent of inducing technical funds to sell larger quantities which JPM & other commercials then buy.

Gold And Silver – New World [Dis]Order Continues To Slip

Apart from the paper market, there is no reason for anyone to change their habit of buying physical gold and silver. The end game, [of manipulation and US/UK paper derivative dominance] is closer and closer. The best preparation against the collapse of the fiat banking system is the accumulation of gold and/or silver.

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.

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