So what have we seen with big money like Goldman Sachs? A look at the COT Disaggregated report will shed some light. Looking back in the first week of October 2012 we see Producers net short -216,654 contracts and by the first week of January 2013 Producers were net short -135,518. As of last week Producers were net short -76,562. Swap Dealers back in the first week of January were net short -42,954 contracts and as of last week were net short -67,240 contracts.
Look back to the summer of 2008 and you will see the last time these two groups got so close. As a matter of fact for a bit Swap Dealers crossed below Producers carrying a larger net short position than Producers. See where the price of gold went? $700. I highlighted the bearish posture big money starting taking way back in October. Funny how now Goldman Sachs is issuing a sell in gold? You want to know when the drop will stop watch big money.
If you need help understanding how to understand how to use the NEW COT report to your benefit get instant access to my new e-book "What Lies Beneath ALL Trends". It is filled with eye opening information.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.
Proceed to Page 3 for this week's detailed fundementals...