Silver Commitments of Traders – The Saga Continues

by Dan Norcini
Trader Dan

This is really getting to be quite something to witness.

After that huge volume blow off day of April 21, when silver spiked to $17.75 and then promptly collapsed 100 points ( a full $1.00), I thought we would certainly see some signs of long liquidation in this week’s Commitments of Traders report. After all, the poor souls who bought up above $17.50 only to have the price collapse on them within 60 minutes had surely bailed out.

If they did, they must have been promptly replaced by even more hedge fund buying because believe it or not, the hedge fund long position got even larger this past week, and that does not even include the buying orgy that was sparked by the FOMC statement on Wednesday and more importantly the inexplicable lack of action by the Bank of Japan on Thursday, which as we all know by now, lead to a buying frenzy across the commodity sector but especially across all the metals, both precious and industrial. I cannot even imagine how much more lopsided this thing has become after the price surge of the last three days of this week.

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