Last week May 2013 Silver opened at $25.940 and closed the week at $22.960. On Tuesday, April 16 silver had a bounce off of the low of $22.000. We saw an extreme two day drop in silver from April 12 and 15 where silver fell $4.219, a $21,095 drop.
Proceed to Page 2 for the latest COT Data...
This past week we saw an important move in the COT Disaggregated report. Producers continued adding to net shorts as Managed Money liquidated net shorts and are now net long, a bull move. Swap Dealers liquidated net longs. Look closely at the weekly chart to see the price action of silver when our friends the swap dealers become net short. Producers are now net short -32,196 contracts, Managed Money are net long 9,449 contracts, and Swap Dealers are net long 9,698. Watching over the next few weeks for Swap Dealers to continue dropping net longs and get into net short territory, as they become bullish silver. Take a good look at the charts below to see what you need to watch for to catch a nice move up. Have a prosperous trading week.
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...
On the daily chart we see ADX reflecting a strong trending market that is still in oversold territory. DI Differential is at 17.35. Watch this number either rising or dropping for insight into where the price action is headed. MACD is bearish and has dropped a bit of divergence from below the signal line.
Click to enlarge.
Have a prosperous trading week.
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