Marshall Swing writes: Commercials added 2,372 longs and 2,484 shorts to end the week with 47.57% of all open interest 132,485,000 ounces net short, a small increase of 555,000 ounces.

Large speculators netted only -103 contract longs and covered -324 shorts for a net long position of 92,035,000 ounces, a increase of almost 1,105,000 ounces from the prior week.

Small speculators bought 2,777 longs and accumulated 2,887 shorts for a net long position of 40,450,000 ounces a decrease of over 550,000 ounces from the prior week.

In the disaggregated Commercials, the Producer/Merchant is short 195,145,000 ounces while the Swap Dealers are long 62,660,000 ounces.

It is certainly going to be interesting to find out what some of the the small speculators are thinking by adding this huge amount of shorts. Remember the small speculators are many players as compared to the other categories. Obviously some of them are betting on a near future price drop in the silver metal. Note that now the shorts of the small speculators far outnumbers the shorts of the long speculators. The small have amassed 14,872 short contracts and are really sticking their necks out on the line. We may be about to witness a rise in the silver price to shake out those shorts followed by a quick drop to scare away their longs. What are our little guys thinking?

Marshall Swing
The Got Phyzz? Report

© 2012 Copyright Marshall Swing - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.