Gold, COT Style 01/30/2010

January 30, 2010, Posted by ttbm at 11:19 am

We have decided to change the format of how we deliver our COT or trend analysis each weekend…

[Content protected for T3bm Members only]
Please Log In or Sign Up
to view the complete post.
Subscribe Now!!

Currently have 2 Comments

  1. Blake Cantley says:
    January 30, 2010 at 11:33 am

    This may be too large of a question to ask for an answer in the comments, but I have a hard time grasping what makes commercial buying a bearish indication for gold. Shouldn’t they buy when they think prices will rise? IS the reason that they like to buy all the way down to build a position because they have too much money to simply buy at what they perceive to be the bottom? Therefore they buy all the way down and take profits all the way up, or vise versa in a shorting position? Thank you so much for the help.

  2. ttbm says:
    January 30, 2010 at 11:48 am

    For most physical commodities such as Gold, Commercials are usually end users or producers and we call that the “Smart Money”, they’re not in the business of speculating but either buying for manufacture or hedging purposes. Commercials or smart money tend to be “Trend Enders”, so when you see Commercial buying rise, it usually signals an end of the current rally and the inverse, when Commercials begin to sell or short you tend to see rallies because they’re the fuel supply of the rally. We can see this by watching the Speculators or Large Specs buying rise at the same time Commercials are selling. So in a long winded reply, yes, your right, “they buy all the way down and take profits all the way up, or vise versa in a shorting position?”. In my experience, Larry Williams has the best explanation of the Commitment of Traders Report basics.

    Thanks for your support,

    Alex

You must be logged in to post a comment.