Silver COT Analysis: Short Squeeze in the Making

The foundation has been built for one of the biggest short squeezes in history. As seen through this week’s Commitments of Traders (COT) report, the short covering by the commercial banks looks like it’s well under way with a dramatic reduction in the net short position of 4,831 contracts (24.155m ounces). Even more exciting is the huge decrease in adjusted net open interest, falling by 5,005 contracts. It is now apparent something has startled all of the commercials as we see a decrease of 1,861 in the net short position of the 4 largest and a decrease of 1,220 in the net short position of the 8 largest. While their concentration levels actually increased, that is only due to the fact net open interest fell by much more than their net short positions.

This is the most bullish report I’ve seen thus far in any COT report. There now appears to be structural changes taking places. Increasing open interest has been the trend for a very prolonged pe

By admin posted about 1 year ago

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