Stunning Plunge in COMEX Commercial Silver Net Short Positions! Very Bullish!

• Gold and silver bugs sit tight ! Do not be afraid. This takedown by the Illuminist bullion banksters will reverse itself and go much higher. The bullion banks are rapidly reducing their short positions because they know what is coming! They are scared shit and getting out as fast as they can. The best analogy is that of a coming tsunami. Before the major tsunami strikes, the water recedes greatly for kilometres into the ocean, exposing corals, sea beds …etc. Thereafter a ginormous wave comes rushing onto land and killing everything in its paths. Gold and silver are about to make an upward move that will stun all naysayers! Sit tight! GotGoldReport sums up the extremely bullish open interest figures!
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  Stunning Plunge in COMEX Commercial Silver Net Short Positions
  The CFTC just released its commitments of traders (COT) report at 15:30 ET for trader’s positions as of the close on Tuesday, September 27 and the data show a stunning drop in the large commercial net short positions in both gold and in silver futures.
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  For example, as silver fell $7.88 or 19.8% Tues/Tues, from $39.76 to $31.88, traders classed by the CFTC as “commercial” reduced their collective net short positioning (LCNS)  by an extremely large 16,446 contracts to show 24,262 contracts net short.  This, while the open interest fell by 10,089 to 102,014 open.
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  Not since November of 2008, during the heat of the 2008 Panic, has there been a smaller commercial net short position for silver futures. We can say that as of Tuesday, the largest, best funded and presumably the best informed commercial traders of silver futures had taken the price downdraft opportunity to very strongly reduce their short bets for the second most popular precious metal.
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  We will have more commentary on this unusually large reduction in commercial net short positioning, including a 30,945-contract reduction in the LCNS for gold futures,  in the technical graph comments for Vultures, which we intend to complete by the usual time this weekend.
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  (Ed. Note added at 16:35 ET.  The last time the combined commercial traders were this “small” on the short side of silver futures, November 25, 2008, the price of silver then was $10.33 the ounce.  Therefore, with silver at $31.88 on Tuesday, having tested as low as $26.04 in panic liquidation selling the day before, we can say that commercial traders had about as much confidence in the price of silver going lower as they did at $10.33 silver three years ago.
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  Incidentally, for Vultures, the relative commercial net short positioning also plunged to a very low and usually bullish 23.8% of all COMEX contracts open – the lowest LCNS:TO since October of 2008.  (Graph below.)  This is a very bullish COT report for silver.  Let’s see if the market “gets” that in the days and weeks ahead.)
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  …. for the full report click here!

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