Index futures have opened slightly lower Sunday evening while bullion futures are trading moderately higher. My respective touts for each suggest both trends are likely to continue into the new week. Gold in particular looks ripe for a short-squeeze, with plenty of room to the upside if buyers should decide to launch it toward the current, very bullish Hidden Pivot target contained in my latest tout.
Don’t Be Lulled by ‘Quiet’ Sunday Evening
- April 17, 2017, 10:35 am
SI and CL markets have the COT data at all time highs in shorts at this time. Staying with the long trend is by way of staying with the commercials most times if not at all times.
In late 10/2007 then 2008 CL was also in this area in decade high in COT short sales, that prove to be a violent market. COT’s are seldom caught wrong but when they do it makes for a more interesting shift in paper for their ‘cover’ as back then the move towards 150+/-.
The same should be suggested in SI and CL today, key numbers are a Friday close over 53.99 close in CL. And, for SI a Friday close over 19.214 level this will confirm that COT’s are caught short and are running for the ‘cover’ These levels will be a lighting rod of paper, like the paper use at the bookie joint for the burn on the raid.
Both markets have move towards testing these levels in the weekly turn just recently and suggest that the COT trade is wrong on spot, and that the ‘cover’ looks to be as violent as it was for CL in 2007/2008.
Have a great one Rick.