When will silver take out its all-time high?

In the COT legacy report, we see commercials -55,182 net-short. Actually, looking at the COT disaggregated report, we see Producers (true commercials) -48,933 net-short, Swap Dealers -6,249 net-short, and Managed Money 31,623 net-long.

What other metal are Swap Dealers net short? That’s right — GOLD. Read my special note under fundamentals to see why Swap Dealers are net-short silver. If the buying up of hard silver continues, hitting $50.00 by year-end is possible. Unlike gold, industry may have something to say about this. Have a pleasant week and remember to follow the trend.

Commercial Net Tracker instructions: This form tracks the Commitment of Traders (COT) data for the commodity futures market. This form "looks" at the most recent five weeks of COT data and provides visual indications of the data. A) If the current value is at a 12-month low, the cell will display a red/burgundy background. B) If the current value is at a 12-month high, the cell will display a green background. C) If the current value went from net negative to net positive, the cell will display a blue background (indicating a bullish condition). D) If the current value is both a 12-month high and also went from a net negative to a net positive, the background will be green. You should view the data with green backgrounds to determine if they also went from net negative to net positive.

If you need help understanding how to understand how to use the COT report to your benefit, please email me at Gary@crbtrader.com and put COT report in the subject line. Please include your name and telephone number in the email.

Proceed to Page 3 for this week's detailed fundementals charts...